T-Mobile is buying US Cellular’s Wireless operations for $4.4 billion

T-Mobile announced on Tuesday that it has reached an agreement to acquire all of United States Cellular’s wireless operations, including its customer base, retail stores, and 30% of its spectrum assets, in a transaction valued at $4.4 billion.

Under the terms of the agreement, U.S. Cellular will retain ownership of approximately 70% of its spectrum and 4,400 telecom towers. T-Mobile has committed to leasing space on at least 2,600 of these towers, ensuring continued collaboration between the two companies.

T-Mobile will finance its $4.4 billion acquisition of U.S. Cellular’s wireless operations through a combination of cash and up to $2 billion in debt, which it will assume via an exchange offer to select U.S. Cellular debtholders. The acquisition is projected to close in mid-2025, pending regulatory approvals, Reuters reported.

The telecom giant stated that the transaction is not expected to impact its financial forecast or shareholder return program for 2024. T-Mobile anticipates the deal will generate approximately $1 billion in cost synergies, including operating expenses and capital spending.

The news of the acquisition comes less than a year after T-Mobile laid off 7 percent of its workforce, or about 5,000 jobs, amidst growing economic uncertainty. As of the end of the fourth quarter in 2022, T-Mobile maintained a workforce of approximately 71,000 employees.

As we reported back in 2020, T-Mobile merged with Sprint in a $26 billion deal to take on Verizon. Back then, the former CEO of T-Mobile, John Legere, confidently promoted the merger with Sprint as a means to generate lasting “high-quality, high-paying jobs.”