T-Mobile US Inc TMUS

T-Mobile: We Like the US Cellular Transaction

T-Mobile’s plan to acquire the bulk of US Cellular’s operations for $4.4 billion makes strategic and financial sense, in our view. The transaction adds scale in a handful of large markets including Milwaukee, Wisconsin; Tulsa, Oklahoma; and Omaha, Nebraska and provides additional coverage across large swaths of 21 states. We’re increasing our fair value estimate to $180 from $175 to reflect the incremental value we believe this deal brings, tempered by our view that regulators may not approve the deal in its current form.