T-Mobile announces the acquisition of TV tech pioneer, Layer3 TV, Inc
The Un-carrier will enter the $100+ billion pay TV market in 2018, bringing consumers real choice.
Bellevue, Washington and Denver, Colorado — Dec. 13, 2017 — You say you want a revolution? Today, T-Mobile US, Inc. (NASDAQ: TMUS, “T-Mobile”) president and CEO John Legere unveiled (https://newsroom.t-mobile.com/video_display.cfm?video_id=15935) the next phase in the Un-carrier’s mobile video strategy, announcing plans to launch a disruptive new TV service in 2018. To fuel that, Legere also announced the Un-carrier has signed a definitive agreement to acquire TV technology innovator Layer3 TV, Inc. (“Layer3 TV”) and will work with Layer3 TV’s leading technology and talent to create T-Mobile’s new TV service.
“People love their TV, but they hate their TV providers. And worse, they have no real choice but to simply take it – the crappy customer service, clunky technology and outrageous bills loaded with fees! That’s where we come in. We’re gonna fix the pain points and bring real choice to consumers across the country,” said John Legere, president and CEO of T-Mobile. “It only makes sense for the Un-carrier to do to TV what we’re doing to wireless: change it for good! Personally, I can’t wait to start fighting for consumers here!”
Bringing Real Choice to TV
The Un-carrier will build TV for people who love TV but are tired of the multi-year service contracts, confusing sky-high bills, exploding bundles, clunky technologies, outdated UIs, closed systems and lousy customer service of today’s traditional TV providers. And people are tired of all the BS that comes bundled with Big Cable and Satellite TV – America’s #1 most-hated industry. In fact, 8 of the 10 brands with the lowest customer satisfaction scores in America are cable and TV providers1.
“We’re in the midst of the Golden Age of TV, and yet people have never been more frustrated by the status quo created by Big Cable and Satellite TV,” said Mike Sievert, Chief Operating Officer of T-Mobile. “That’s because the world is changing – with mobile video, streaming services, cord cutting, original content and more — and yet, the old guard simply can’t – or won’t – evolve. It’s time for a disruptor to shake things up and give people real choice like only the Un-carrier can.”
Shifting the Un-carrier’s Mobile Video Strategy into Overdrive
T-Mobile has long been a leader in mobile video – first, giving customers the freedom to stream as much as they want with Binge On and T-Mobile ONE, and then giving T-Mobile ONE families a free Netflix subscription included at no extra charge. All of these Un-carrier moves sent shockwaves through the wireless industry, prompting competitors to continue to follow T-Mobile’s lead.
Today, the Un-carrier is shifting its strategy into overdrive by acquiring fellow disruptor Layer3 TV. Currently, Layer3 TV delivers a product that seamlessly integrates the best of television, streaming online video content and social media and is available in five cities across the US. With Layer3 TV’s leading technology and talented team, T-Mobile plans to launch its own disruptive new TV service next year, tapping into the amazing content available from creators today to disrupt legacy cable and satellite TV’s distribution model. The Un-carrier’s new TV service will take full advantage of T-Mobile’s nationwide retail presence, top-rated brand and award-winning sales and customer care organizations.
“No market needs Un-carrier-ing more than pay TV, so we’re completely stoked to join T-Mobile in disrupting the status quo!” said Jeff Binder, CEO of Layer3 TV, Inc. “Together with T-Mobile, we’re going to ditch everything you hate about cable and make everything you love about TV better.”
A Network Built for Video
At the heart of T-Mobile’s mobile video strategy is the nation’s fastest LTE network – a network built to handle customers’ growing appetite for mobile video. Since last year, wireless customers are using 37.5% more data on average, and T-Mobile’s network has only gotten faster – with download speeds increasing 28% in the last year. And, T-Mobile’s network just continues to expand and improve with new nationwide low-band spectrum and more advanced technologies deployed than any other wireless company. Plus, T-Mobile is out in front again on 5G. The Un-carrier was first to commit to build a nationwide 5G network and has already begun working on that by deploying 5G-ready equipment.
Please join John Legere, Mike Sievert, Jeff Binder and other T-Mobile executives for a conference call today, December 13, at 8 AM pacific / 11 AM eastern.
Participant Passcode: 5735302
The call will be available live and on demand shortly after the call concludes on T-Mobile’s press room at https://newsroom.t-mobile.com.
You can submit questions on the call or by tweeting @JohnLegere with #Uncable. Please plan on accessing the conference call ten minutes prior to the scheduled start time. The call will be approximately 30 minutes including a business update and Q&A.
The acquisition is subject to customary closing conditions including regulatory approval and is expected to close in the coming weeks. The acquisition is not expected to impact previously announced company guidance or expectations.
Speed Claims based on Ookla’s analysis of Speedtest Intelligence data for Q3 2016–Q3 2017. Ookla trademarks used under license and reprinted with permission.
1 University of Michigan’s American Customer Satisfaction Index, 2017
About T-Mobile US, Inc.
As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 70.7 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, please visit http://www.t-mobile.com.
About Layer 3 TV
Layer3 TV, Inc. is The New Cable®. Layer3 TV offers customers a revolutionary, intuitive interface that seamlessly integrates the best of cable TV, premium channels, streaming online video content, social media, and smart home devices. Founded in 2013, the company is backed by highly respected players in entertainment and private equity including Evolution Media (whose shareholders include TPG Growth, Creative Artists Agency, and Jeff Skoll/Participant Media), Paulson and Company, Inc., Altice, and North Bridge Venture Partners. The company is represented by Goldman Sachs & Co. LLC and LionTree Advisors. To learn more follow Layer3 TV on Twitter and Facebook @Layer3TV or visit layer3tv.com.
This news release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Any statements made herein that are not statements of historical fact, including statements about T-Mobile US, Inc.’s plans, outlook, beliefs, opinions, projections, strategy, market and distribution expansion, and expected timing of closing the transaction, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “anticipate,” “expect,” “suggests,” “plan,” “project,” “believe,” “intend,” “estimates,” “targets,” “views,” “may,” “will,” “forecast,” and other similar expressions. The forward-looking statements speak only as of the date made, are based on current assumptions and expectations, and involve a number of risks and uncertainties. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: adverse economic or political conditions in the U.S. and international markets; competition in the wireless services and pay TV markets, including new competitors entering the industry as technologies converge; the effects any future merger or acquisition involving us, as well as the effects of mergers or acquisitions in the technology, media and telecommunications industry; challenges in implementing our business strategies or funding our wireless operations; any disruption or failure of our third parties’ or key suppliers’ provisioning of products or services; material adverse changes in labor matters, including labor campaigns, negotiations or additional organizing activity, and any resulting financial, operational and/or reputational impact; the ability to make payments on our debt or to repay our existing indebtedness when due; adverse change in the ratings of our debt securities or adverse conditions in the credit markets; and other risks described in our filings with the Securities and Exchange Commission, including those described in our most recently filed Annual Report on Form 10-K. You should not place undue reliance on these forward-looking statements. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.