MetroPCS withdraws merger offer for Leap Wireless

Merger called off for good this time

After being turned down earlier this year, it seems that MetroPCS is calling off its proposed marriage with Leap Wireless for good.

Claiming it has been unable to engage in any "meaningful negotiations" with Leap Wireless over the last two months, MetroPCS announced that it officially is withdrawing the merger proposal that was publicly unveiled in September.

"MetroPCS believes strongly in its stand-alone prospects and will continue to focus on realizing its significant growth opportunities," the company said in a statement.

Initially, MetroPCS had proposed a merger between the two companies that would have given Leap Wireless shareholders 2.75 shares of MetroPCS common stock in exchange for each Leap Wireless share.

MetroPCS claimed at the time that the merger would create a new national wireless carrier, even though the two companies' estimated combined subscriber base of 6.2 million still would be dwarfed by Verizon, AT&T and Sprint Nextel, which each claim more than 50 million subscribers. Additionally, MetroPCS CEO Roger Linquist said at the time that a Metro-Leap merger would create a carrier that would have "licenses covering nearly all of the top 200 markets in the United States."

But MetroPCS' hopes for a quick marriage were dashed when Leap Wireless CEO Doug Hutcheson spurned the company's offer just weeks after it went public. Hutcheson said that MetroPCS' proposal failed to "reflect Leap's strong growth prospects and the foundation that we have put in place to capitalize on the significant opportunities in our industry." At the time, Leap spokesman Greg Lund said the company would still be open to merging with MetroPCS if the company felt it had the right offer.

Both companies focus on prepaid wireless services to customers with less-than-stellar credit ratings, including the youth market. The company has built up a presence in larger US metropolitan areas, while Leap is considered stronger in suburban and rural areas.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Brad Reed

Network World
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?