WeWork is reportedly in talks with T-Mobile (TMUS) CEO John Legere about him leading the co-working startup company. WeWork is looking for a new CEO to turn around the company and take it public. After the WeWork CEO news yesterday, T-Mobile stock fell 1.6% and closed at $79.62.
Yesterday, The Wall Street Journal reported, “WeWork’s parent, formally known as We Co., is searching for a CEO who can stabilize the company following the erratic tenure of its co-founder Adam Neumann. After WeWork’s failed attempt at an initial public offering, SoftBank Group Corp. bought a majority stake in the company last month in a bailout, severing most ties with Mr. Neumann.”
WeWork is looking for a CEO to begin as soon as January 2020. T-Mobile and WeWork declined to comment on the matter.
SoftBank is Sprint’s (S) majority owner. In April 2018, T-Mobile and Sprint announced plans to merge. And in July 2019, the US Justice Department approved the merger agreement after reaching a settlement with the companies. Under the deal’s terms, the two companies agreed to divest certain wireless assets and spectrum to Dish Network (DISH) for $5 billion.
Earlier this month, the Federal Communications Commission also officially approved the merger after the proposed new T-Mobile agreed to deploy a 5G network across the US.
However, the attorneys general of 15 states and the District of Columbia have filed a lawsuit to block the combination on antitrust issues. A court trial for the multistate lawsuit is set to begin next month. Legere expects to close the deal in early 2020.
Legere is likely to step down as the company’s CEO after the deal with Sprint is closed. To learn more, read T-Mobile and Sprint Merger Gets Arkansas’ Support and T-Mobile-Sprint Merger: Renegotiate Terms?
T-Mobile’s stock performance after WeWork news
Yesterday, T-Mobile stock closed at $79.62, 33% higher than its 52-week low of $59.96 on December 26, 2018. T-Mobile hit its 52-week high of $85.22 on July 26. Based on Monday’s closing price, T-Mobile’s market capitalization was $68.1 billion.
TMUS stock has risen 25.2% year-to-date, 0.1% in the last month, and 15.9% in the last year. Yesterday, it closed 2.3% below its 20-day moving average of $81.49 and 0.3% below its 50-day moving average of $79.88. It was trading 1.2% above its 100-day moving average of $78.71.
Meanwhile, AT&T (T) stock has risen 28.3% in the last year, while Sprint has fallen 4.5%. For more on WeWork, read After Google Drops WeWork, SoftBank Comes to Its Rescue and WeWork: Hello Softbank, Goodbye JPM and Neumann?