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T-Mobile and MetroPCS merger reportedly approved by the executive boards of both companies [Updated]

tmobile metropcsEarlier today we reported that MetroPCS had confirmed that they were in talks with Deutsche Telekom, the parent company of T-Mobile USA, about a possible acquisition. According to the folks at the Wall Street Journal (requires paid subscription), it seems that the deal has been given the blessing by the executive boards of both Deutsche Telekom and MetroPCS. However instead of a regular merger where many expect the larger T-Mobile USA will take over MetroPCS, the WSJ notes that this will be a reverse merger, as in MetroPCS will be the one taking over T-Mobile USA.

It is no secret that Deutsche Telekom was looking to sell off T-Mobile USA, hence the attempted deal with AT&T back in 2011, which is why we guess this particular bit of news isn’t too surprising. Deutsche Telekom is expected to reduce its ownership of T-Mobile USA gradually through equity sales rather than selling everything off at one shot. No formal announcement has been made and of course if the report is to be believed, there will still need to be government approval before it will go through. Either way we’ll keep our eyes peeled so check back with us at a later date for more updates.

Update – T-Mobile has released a statement officially confirming the deal.

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