Deutsche Telekom–T‑Mobile Talks

Deutsche Telekom is exploring a full combination with T-Mobile US, a deal that would collapse a parent-subsidiary structure that has defined the companies for years. (bloomberg.com) Bloomberg reported on April 21 that Deutsche Telekom has discussed creating a new holding company that would make a stock bid for both Deutsche Telekom and T-Mobile US. Reuters said on April 22 that two sources familiar with the matter confirmed the talks were in an early stage. (bloomberg.com) (reuters.com) Deutsche Telekom already owns 52.8% of T-Mobile US, according to the German company’s February 11 statement, and Reuters described the stake as about 53% on April 22. Reuters also reported T-Mobile US at about a $218 billion market value and Deutsche Telekom at about $166 billion. (telekom.com) (reuters.com) The talks have drawn attention because T-Mobile is already the biggest piece of Deutsche Telekom’s business, but outside investors still own nearly half of the U.S. carrier. A full combination would put both companies under one corporate roof instead of today’s split listing in Germany and the United States. (telekom.com) (bloomberg.com) Reuters said the proposed structure under discussion is a new holding company owned by existing investors, with listings in the U.S. and Europe. Reuters also said any deal would need support from Germany, which remains Deutsche Telekom’s largest single shareholder through direct holdings and state lender KfW. (reuters.com) Deutsche Telekom signaled on February 11 that it was not looking to reduce its T-Mobile position. Chief executive Tim Höttges said the company had no plans to sell T-Mobile shares in 2026 and was “continuously reviewing opportunities” to increase its stake if it made strategic and financial sense. (telekom.com) The companies’ history runs back more than two decades, but the current structure was cemented after T-Mobile’s 2020 merger with Sprint created a larger U.S. wireless carrier with its own public shareholder base. T-Mobile still files separately with U.S. investors and has its own earnings calendar, with first-quarter 2026 results scheduled for April 28. (investor.t-mobile.com 1) (investor.t-mobile.com 2) Market reaction was immediate but mixed across the two stocks. Reuters said Deutsche Telekom shares fell 1.5% on April 22 after the reports, while Bloomberg’s report on April 21 helped lift T-Mobile US shares as investors weighed the prospect of a stock-based deal. (reuters.com) (bloomberg.com) Neither report described a finalized agreement, and Reuters said Deutsche Telekom did not respond to a request for comment on Wednesday morning. For now, the story is about a company that already controls T-Mobile deciding whether majority ownership is no longer enough. (reuters.com)