T-Mobile announces a $4.4 billion deal with U.S. Cellular

T-Mobile U.S. Inc (NASDAQ: TSUM) is in focus today after announcing plans of buying most of U.S. Cellular for about $4.4 billion.

Details of T-Mobile's agreement with $USM

The all-cash agreement will see $TMUS acquire stores, customers, and some of the spectrum of United States Cellular Corp (NYSE: USM).

T-Mobile expects the acquisition to help improve coverage in the rural areas. Mike Sievert – its chief executive said in a press release today:

Note that U.S. Cellular customers will have the option to shift to $TMUS or remain on their current plan if they’d like. T-Mobile stock is currently up some 5.0% versus its year-to-date low.

$TSUM - U.S. Cellular deal to close in 2025

The agreement between T-Mobile and U.S. Cellular this morning also includes $2.0 billion of debt.

The wireless network operator expects the announced transaction to complete in the first half of 2025. Its CEO Sievert also said on Tuesday:

The news arrives about a month after T-Mobile reported its financial results for the first quarter that topped Street estimates. Wall Street currently has a consensus “overweight” rating on $TMUS that pays a dividend yield of 1.57% at writing.