Zinger Key Points
- T-Mobile and KKR form JV to acquire Metronet's broadband infrastructure and customer base, with Oak Hill retaining a minority stake.
- The JV will enhance T-Mobile's 5G Home Internet and fiber partnerships.
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T-Mobile US, Inc. TMUS signed a deal with KKR & Co. Inc. KKR to form a joint venture (JV) that will acquire Metronet’s broadband infrastructure, residential fiber operations, and customer base.
At closing, T-Mobile plans to invest about $4.9 billion for a 50% stake in the joint venture, acquiring Metronet’s residential fiber operations and customers, and funding the JV.
Metronet serves over 2 million homes and businesses across 17 states with its advanced fiber-to-the-home (FTTH) platform.
The JV will also acquire Oak Hill Capital’s stake, with Oak Hill re-investing to maintain a minority position and founder John Cinelli retaining a minority stake post-closure.
The JV will enhance T-Mobile’s 5G Home Internet, which already serves 5 million households, and its fiber partnerships, meeting rising demand for faster, reliable broadband.
The transaction is set to close in 2025, pending standard closing conditions and regulatory approvals.
Post-deal closure, Metronet will become a wholesale provider, and T-Mobile will take over its residential fiber operations and customers.
Moreover, Metronet will be self-funding and aims to reach 6.5 million homes by 2030, with no further capital contributions expected from T-Mobile.
Mike Sievert, CEO of T-Mobile, said, “Metronet is the perfect partner for T-Mobile as a leader in fiber solutions with an incredibly fast build pace, and a top-notch management team. Together with KKR’s strong heritage of corporate partnership and global fiber franchise, we will further expand the Un-carrier’s fiber footprint and deliver real value and choice to customers while addressing a growing demand for fast and reliable broadband.”
Investors can gain exposure to the stock via Invesco BuyBack Achievers ETF PKW and Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF NXTV.
Also Read: T-Mobile’s Game-Changing $4.4 Billion Deal With U.S. Cellular Sets New Record Highs
Price Action: TMUS shares are down 0.25% at $176.12 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by viewimage on Shutterstock
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