HomeTechnologyT-Mobile to Sell Wireline Business to Cogent in Billion Dollar Deal

T-Mobile to Sell Wireline Business to Cogent in Billion Dollar Deal

T-Mobile US Inc announced on Wednesday its intention to offload its wireline business to Cogent Communications Holdings Inc. While the exact purchase price has not been disclosed, a $1 billion pre-tax charge in the third quarter of 2022 is expected to be imposed as a means of covering the carrying value of the wireline business.

In addition to obtaining this business unit, Cogent would also be entitled to receive some additional services from T-Mobile for a fee. The transaction will see Cogent acquire T-Mobile’s fiber business as well as certain liabilities. The deal is expected to go through a direct subsidiary of Cogent.

Once the pre-tax charge, as well as the acquisition fee, are taken care of, a separate agreement between the parties is expected to come into effect, whereby T-Mobile will pay $700 million to Cogent for the provision of certain services, expected to be paid in installments.

According to Cogent, the addition of the wireline business will not affect any change in the company’s existing dividend plan and no dilution to existing stockholders’ shares is expected to occur.

Delta CEO Ed Bastian Predicts Further Rise for the Company’s Stock

The majority of the airlines around the United States have been recently going through a period of struggles. One notable exception is Delta Air...

Shares of Palantir Technologies Plunge After a Downgrade From Monness, Crespi, and Hardt

Data-analytics software company Palantir Technologies saw its stock enjoy an admirable run since 2023 amid the ongoing artificial intelligence frenzy. However, it appears that...

Spotify Launches a New Subscription Plan for Users in the U.S.

The music streaming platform Spotify announced it would roll out a new subscription plan for its users in the United States. The news comes...