Ahead of the upcoming 700Mhz frequency spectrum auction in January, MetroPCS has today put in an offer to buy-out rival Leap Wireless for $5.12 bilion. The offer would give Leap Wireless 2.75 shares for every share of Leap Wireless and would bring along $2 billion in debt.
MetroPCS has been rumored to be a strong contender for the 700Mhz slice of the spectrum pie, and if they acquire Leap Wireless, MetroPCS could have the momentum to bid on the spectrum and become a major player in the US wireless market.
Says MetroPCS Chairman and Chief Executive Roger Linquist, “We see a compelling strategic rationale to bring together the two companies.” Could that “compelling” strategy be to get their foot in the nationwide wireless carrier game?
The move would put 6.2 million wireless subscribers in the fast-growing low-end market under a single corporate banner. If the deal goes through, MetroPCS is the one to keep an eye one. We’ll see what this growing pre-paid carrier does with the upcoming auction.
[Via: Yahoo]