New Street Research is a talent-driven organization. We are always looking for creative, curious, driven thinkers. If you think you would be a good fit, please reach out to us.
T-Mobile announced that John Legere is stepping down as CEO on April 30th, 2020 and Braxton Carter is extending his contract until July 1st, 2020. The announcement of the transition is no surprise; Sievert has been the heir apparent for some time; however, the timing is a little surprising. The company attributes the timing to removing an uncertainty around the continuity of leadership and of the Un-carrier strategy ahead of the trial. This strikes us as plausible.
For our part, we expect T-Mobile’s current path to continue under Sievert; we suspect he has played a strong role in shaping T-Mobile’s strategy for years. We doubt the management change will materially impact the prospects for the case at trial. As such, the announcement has no impact on our thesis.
Blair Levin, our partner on regulation and policy, has given the deal less than 50% odd of approval for some time (see most recent comment HERE). We think the deal ought to go through (see thoughts HERE), but we understand why it may not. We are comfortable owning T-Mobile’s stock either way.
We continue to see an opportunity for tremendous value creation if T-Mobile acquires Sprint (it is more than just synergies; see our evolving thoughts on the value of capacity and unit costs HERE on slide 6). The opportunities for the company may not be quite as good without Sprint; however, we see upside in that scenario too.
Full 12-month historical recommendation changes are available on request
Reports produced by New Street Research LLP. 52 Cornhill, London EC3V 3PD Tel: +44 20 7375 9111.
New Street Research LLP is authorised and regulated in the UK by the Financial Conduct Authority and is registered in the United States with the Securities and Exchange Commission as a foreign investment adviser.
Regulatory Disclosures: This research is directed only at persons classified as Professional Clients under the rules of the Financial Conduct Authority (‘FCA’), and must not be re-distributed to Retail Clients as defined in the rules of the FCA.
This research is for our clients only. It is based on current public information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Most of our reports are published at irregular intervals as appropriate in the analyst's judgment. This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.
All our research reports are disseminated and available to all clients simultaneously through electronic publication to our website.
New Street Research LLC is neither a registered investment advisor nor a broker/dealer. Subscribers and/or readers are advised that the information contained in this report is not to be construed or relied upon as investment, tax planning, accounting and/or legal advice, nor is it to be construed in any way as a recommendation to buy or sell any security or any other form of investment. All opinions, analyses and information contained herein is based upon sources believed to be reliable and is written in good faith, but no representation or warranty of any kind, express or implied, is made herein concerning any investment, tax, accounting and/or legal matter or the accuracy, completeness, correctness, timeliness and/or appropriateness of any of the information contained herein. Subscribers and/or readers are further advised that the Company does not necessarily update the information and/or opinions set forth in this and/or any subsequent version of this report. Readers are urged to consult with their own independent professional advisors with respect to any matter herein. All information contained herein and/or this website should be independently verified.
All research is issued under the regulatory oversight of New Street Research LLP.
© Copyright 2022 New Street Research LLP
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of New Street Research LLP.