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Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO
Global Banking & Finance Review®
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(Reuters) – Deutsche Telekom now holds a majority in T-Mobile U.S., the chief executive of the German telecoms company said on Wednesday.
(Reuters) – Deutsche Telekom now holds a majority in T-Mobile U.S., the chief executive of the German telecoms company said on Wednesday.
The company reached a majority stake in T-Mobile U.S late Tuesday, CEO Tim Höttges said at the company’s annual general meeting.
“We have the majority and are the largest shareholder of the world’s most valuable telecommunications company – T-Mobile U.S.,” he said.
Since 2013, the value of T-Mobile U.S. has increased by 153 billion euros ($167.44 billion).
The increase in value for Deutsche Telekom’s shareholders stood at more than 70 billion euros, Höttges said.
Deutsche Telekom estimates that the benefits of the transaction – between $7.2 and $7.5 billion – will outweigh the costs, which will amount to less than $1 billion in 2023.
($1 = 0.9137 euros)
(Reporting by Tom Käckenhoff, writing by Linda Pasquini, editing by Friederike Heine)
A majority stake refers to owning more than 50% of a company's shares, granting the shareholder significant control over company decisions and operations.
A shareholder is an individual or institution that owns shares in a company, representing a claim on part of the company’s assets and earnings.
Corporate strategy is a plan that outlines how a company will achieve its goals, including decisions on resource allocation, mergers, and acquisitions.
Investment is the act of allocating resources, usually money, in order to generate income or profit, often through purchasing assets like stocks or real estate.
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