T-Mobile’s shares gain boost from Layer3 TV purchase, TV streaming plans
US mobile phone operator T-Mobile has announced its intention to launch a TV streaming service in 2018. T-Mobile shares gained on the news as investors bid the stock a little higher.
T-Mobile shares ended the US Wednesday trading session 0.55% in the green at $63.83.
The announcement comes as T-Mobile has purchased tech start-up Layer3 TV, for an undisclosed amount.
T-Mobile to utilise existing cable start-ups tech
T-Mobile’s purchase of Layer3 TV gives it a good base from which to build on to move into the TV streaming market. The start-up is a small cable provider, available in only a few cities, which includes:
- Los Angeles.
- Chicago.
- Washington D.C.
“With Layer3 TV’s leading technology and talented team, T-Mobile plans to launch its own disruptive new TV service next year, tapping into the amazing content available from creators today to disrupt legacy cable and satellite TV’s distribution model,” T-Mobile said in a press release.
“We’re completely stoked to join T-Mobile in disrupting the status quo!” said Jeff Binder, CEO of Layer3 TV, Inc. “Together with T-Mobile, we’re going to ditch everything you hate about cable and make everything you love about TV better.”
News follows collapse of merger talks
The Layer3 TV and TV streaming service announcement follows news that a potential tie-up between mobile carriers T-Mobile and Sprint. The deal couldn’t go ahead as both mobile carriers failed to strike an agreement on pricing and control.
“Unfortunately, for a variety of reasons, we ultimately couldn’t come together with terms. And we certainly tried, but it was definitely a complicated situation,” said T-Mobil CEO, Braxton Carter at the recent Morgan Stanley Technology, Media, and Telecom Conference.
However, it appears no such problems arose with Layer3 TV and T-Mobile appears as ‘stoked’ as the Layer3 team about the development.
“We’re gonna fix the pain points and bring real choice to consumers across the country,” said John Legere, president and CEO of T-Mobile, on the announcement.
