Is T-Mobiles $4.9 Billion Power Play Set to CRUSH Verizon and AT&T?

Well just as WazirX put the nail in the coffin to not mess with crypto, T-Mobile may have just sealed the deal for me to switch mobile carriers. (I’m with AT&T so it’s a justified decision). 

(Source: Reddit) 

In short, T-Mobile, who is fresh off its $4.4 billion deal to acquire US Cellular, has spontaneously decided to team up with investment firm KKR to drop a whopping $4.9 billion for a 50% stake in Metronet’s residential fiber retail operations and customers. Metro.. who? 

(Source: Wall Street Journal) 

My thoughts exactly, but apparently this little known telecom giant has a cash cow of fiber optics that currently reaches 2 million homes across 17 states with estimates saying it will reach 6.5 million homes by 2030. So understandably, T-Mobile want’s that bag. How much of the bag? Think 50% equity stake (split with KRR) and 100% ownership of Metronet’s residential fiber operations. Yaaa buddy get that monay!

(Source: Giphy) 

But while this is yet another link in T-Mobiles armor, and a massive payday for Metronet’s owners at that, the founders aren’t exactly saying goodbye. Oak Hill Capital and John Cinelli (Metronet’s owners) are still looking to keep a piece of the pie as reports say they’re reinvesting the money from the buyout to keep a minority stake. 

(Source: Giphy) 

Which is smart on their part, because once the deal closes in 2025 (pending regulatory approval, of course), Metronet will shift its focus to wholesale services while T-Mobile takes over the residential fiber retail operations. This means T-Mobile will be in charge of wooing new customers (their strong suit) and keeping them happy with its top-notch service.  

(Source: Phone Arena) 

Obviously, CEO Mike Sievert is pretty pumped about this, calling Metronet a perfect partner with “an incredibly fast build pace and a top-notch management team.” 

(Source: Geek Wire) 

So as investors can see, T-Mobile is priming up to go guns a blazin with sealing it’s fiber optic dominance, especially as they partnered with EQT to acquire Lumos Networks for their fiber services earlier this year. In fact, since 2022, T-Mobile has bought Mint Mobile, Ultra Mobile, Plum, and even a rideshare advertising network, Play Octopus. Meaning, as of right now… competitors should be sweating bullets. 

(Source: Giphy) 

Sure, AT&T recently partnered with BlackRock to expand its fiber footprint, but T-Mobile’s aggressive expansion strategy is making Ma Bell look like it’s stuck in the dial-up era. 

And Verizon? Well just fugghetabout their FIOS game plan, because with this massive reach T-Mobile is gaining, Verizon’s customer base could be easily swooned away from them. 

(Source: Giphy) 

Now with that said, the T-Mobile and KKR deal for Metronet isn’t expected to finalize until 2025, but with the news, T-Mobile is up +0.22% on the day. Which is a nice little turn of the tables as the stock is down -3.67% over the last five days. 

So what to do, what to do you ask?

Well, as always, keep an eye out for T-Mobile’s stock as the acquisition news continues to spread over the next few days. With the Metronet deal, T-Mobiles is continuing to separate themselves from their “peasant” competitors, giving AT&T and Verizon a run for their money.

(Source: Reddit) 

So, if you’re looking for a sign to switch providers like me, then this might be it. T-Mobile has always been about speed, and with their recent fiber optic moves, they are only looking to get faster. In the end, it appears that T-Mobile is done with games… it’s dang near rewriting the rules. 

Stocks.News holds positions in T-Mobile, AT&T, and Verizone as mentioned in the article.