Nevada, once a critic of the proposed megamerger between T-Mobile (TMUS) and Sprint (S), now supports the deal. The two mobile companies convinced Nevada Attorney General Aaron D. Ford via some specific commitments. On November 25, Ford announced that Nevada had settled with the two wireless carriers and was exiting the multistate lawsuit.
T-Mobile and Sprint merger gain Nevada’s support
In a statement, Ford said, “With this settlement, T-Mobile and Sprint have demonstrated their commitment to preserve Nevada jobs, deploy a high speed 5G network across the State covering 83 percent of our rural communities, and offer low-price plans.”
He added, “Beyond these benefits, the New T-Mobile will make a significant investment to enhance service to our Native American Tribal communities, contribute to programs that enhance opportunities for minorities, women and small businesses. Because of these commitments, I can now support a merger that will preserve Nevada jobs and benefit consumers throughout our State.”
On the same day, Texas Attorney General Ken Paxton announced that Texas had also settled with T-Mobile and was opting out of the lawsuit. Last month, Mississippi and Colorado also dropped out of the litigation.
According to a FierceWireless report on November 25, following Texas and Nevada’s departure, “The Communications Workers of America [CWA] union said it remains skeptical of ‘last-minute pledges and unenforceable commitments’ from T-Mobile.”
How many still oppose the deal between T-Mobile and Sprint?
With Nevada and Texas opting out, about 13 Democratic state attorneys general and the District of Columbia are still trying to block the deal on antitrust concerns. The states argue that the combination of the third- and fourth-largest wireless carriers in the US would harm US consumers and employees. California and New York are leading the charge. A district court trial will begin on December 9.
The merger deal has been conditionally approved by antitrust regulators, including the US Department of Justice and the Federal Communications Commission. T-Mobile and Sprint promised to divest Sprint’s prepaid business and some spectrum to Dish Network (DISH) for $5 billion.
To learn more about the merger deal, read T-Mobile–Sprint Merger Gets Texas Support and T-Mobile’s New Initiatives Don’t Address Antitrust Issues.
T-Mobile stock currently offers a potential upside of about 14.4% for the next 12 months. Wall Street analysts have given it a mean price target of $89.74 against its current price of $78.45.
Analysts look mostly bullish on TMUS. Among the total 21 analysts covering T-Mobile, 16 give it “buys,” five give it “holds,” and none give it “sells.”
T-Mobile’s peers Sprint and AT&T (T) are trading 4.4% and 4.3% below analysts’ mean price targets, respectively.
T-Mobile has risen 23.3% year-to-date as of November 26. Sprint and AT&T have risen 2.4% and 31.0%, respectively. On November 26, T-Mobile closed at $78.45. This closing price was 30.8% above its 52-week low of $59.96 and 7.9% below its 52-week high of $85.22.
T-Mobile stock has reported returns of 1.7% in the trailing five days and -3.9% in the trailing one month. It’s also gained 16.2% in the trailing 12 months.
Currently, T-Mobile has a market cap of $67.1 billion. Peers AT&T and Sprint have market caps of $273.2 billion and $24.5 billion, respectively.
Read Is T-Mobile’s Customer Data Safe? for more of the latest on T-Mobile.