A $14.0 billion share repurchase program has been approved by the board of directors of wireless carrier T-Mobile US, Inc., a Delaware corporation. Through September 30, 2023, T-Mobile (NASDAQ: TMUS), a business with a market capitalization of $182.46 billion, will buy back up to $14.0 billion of its common stock, par value $0.00001 per share. Through the rest of 2022, the buyback might total $3 billion. The current share price of T-Mobile is about $145.38, and to date in 2022, the stock price has increased by 25%.
Based on the company’s assessment of market conditions and other circumstances, repurchases or buybacks are anticipated to be funded by available cash on hand, proceeds from one or more debt issuances, or other borrowings.
T-Mobile US Inc (TMUS.O) is doubling down on 5G services after agreeing to a deal to sell its landline assets to Cogent Communications Holdings Inc for $1 while taking a $1 billion charge on the transaction. The contract includes a $700 million commitment from Cogent to meet the carrier’s transit requirements for the next 4.5 years.
Cogent Communications, a provider of internet services and transportation, has revealed plans to buy Sprint’s legacy wireline assets from T-Mobile, but this isn’t your typical acquisition. According to the terms of their agreement, it appears that Cogent will really receive the majority of the money exchanged in the transaction.
According to a filing with the U.S. Securities and Exchange Commission, Cogent will purchase Sprint’s fiber network and related assets for $1. While T-Mobile has agreed to pay Cogent $700 million over a 54-month period for “IP transit services,” the first payment of $350 million is due within the first year following the transaction.
T-Mobile US, Inc. is America’s powerhouse Un-carrier, bringing an innovative countrywide 4G LTE and 5G network that will provide dependable connectivity to everyone. On September 14, 2022, at 3:00 p.m. Pacific Daylight Time (6:00 p.m. Eastern Daylight Time), Mike Sievert, president and chief executive officer of T-Mobile US, Inc. (NASDAQ:TMUS), will present and give a business update at the Goldman Sachs Communacopia + Technology Conference.
The Sprint division now employs about 1,300 people, but Cogent CEO Dave Schaeffer predicted that number to decline both before and after the deal’s closing. He mentioned that T-Mobile has agreed to provide Cogent an extra $25 million to help it with severance payments.
The $700 million and more in payments from T-Mobile, according to Schaeffer, “were designed to continue to help us to build our cash flow” as it works to restructure the Sprint business.
