T-Mobile's Game-Changing $4.4 Billion Deal With U.S. Cellular Sets New Record Highs

• T-Mobile has agreed to acquire U.S. Cellular's wireless operations for $4.4 billion.
• U.S. Cellular will retain about 70% of its spectrum portfolio.
• The announcement of this acquisition has positively impacted T-Mobile's stock, which hit a new record high of $169.

T-Mobile Us Inc TMUS is boosting its network by acquiring United States Cellular Corp USM wireless operations and much of its spectrum assets for $4.4 billion. This aims to improve T-Mobile’s coverage and capacity, reflecting its dedication to better customer service across the U.S.

As part of the deal, T-Mobile will take over U.S. Cellular’s wireless business and acquire much of its spectrum holdings, crucial for both current 4G and future 5G expansions. T-Mobile will also gain access to over 2,000 towers and extend leases on 600 more, significantly boosting its infrastructure and service reach.

The transaction involves a mix of cash payment and taking on up to $2 billion in U.S. Cellular debt. This balanced financial approach allows for potential adjustments based on performance targets to maintain value after the acquisition.

U.S. Cellular will retain about 70% of its spectrum portfolio, enabling it to serve its current customers and stay competitive. The acquisition is expected to close by mid-2025, pending regulatory approvals.

Amid these developments, T-Mobile's stock has reached a new record high of $169. This surpasses previous periods where the stock stayed in a consolidation phase, with support around $158 and resistance near $168.

The stock has climbed nearly 3% in May, leading to a 5% increase for the year. This is impressive considering it recovered from a 19% drop between November 2022 and June 2023, when it fell to $124.

Since then, the stock has risen by 35%, displaying strong market confidence. The announcement of this acquisition, along with the stock's solid performance, will likely attract more investor interest.

This increased attention could further boost T-Mobile's stock prices as the market anticipates the benefits of integrating U.S. Cellular’s assets.

After the closing bell on Wednesday, May 29, the stock closed at $168.88, trading up by 0.94%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.