Top Mergers and Acquisitions: T-Mobile (TMUS) and Sprint
Price: $26.5 Billion
The nation’s third largest wireless carrier, T-Mobile, increased in size dramatically with the acquisition of Sprint. Per the company’s deal with regulators, consumer pricing was locked for the next three years, which has made them attractive to consumers in a market where regular price hikes have become common practice. T-Mobile also completed its divestiture of Sprint’s prepaid wireless business to DISH Network Corporation (NASDAQ: DISH). The divestiture fulfills a commitment that T-Mobile and Sprint made to the Department of Justice and to the Federal Communications Commission as part of their merger process.
Top Mergers and Acquisitions: E-Trade (ETFC) and Morgan Stanley (MS)
Price: $13 Billion
In the midst of a pricing war with Charles Schwab (SCHW), E-Trade’s net revenues were under severe threat until Morgan Stanley announced on Feb. 20 that it would acquire the broker for $13 billion. The deal allowed Morgan Stanley to supplement its wealth management business and broaden its customer base by 5.2 million E-Trade users. The spike in retail investing seen since the pandemic began seems to show this deal was a profitable deal for Morgan Stanley.
Top Mergers and Acquisitions: Amazon.com (AMZN) and AMC Entertainment (AMC)
In May of 2020, rumors that the online retail giant Amazon.com was looking into purchasing the floundering AMC Entertainment movie theater chain caused a short-term spike in share prices for AMC. Since then, prices of AMC stock continued their rapid decline. In October of 2020, Bloomberg reported that AMC is “considering a range of options that include a potential bankruptcy to ease its debt load as the pandemic keeps moviegoers from attending and studios from supplying films.”