T-Mobile CEO Legere to step down next year

By Sheila Dang and Supantha Mukherjee (Reuters) - T-Mobile US Inc Chief Executive Officer John Legere will step down next year, the company said on Monday, less than three weeks before it goes to trial to determine the fate of its planned $26.5 billion merger with smaller rival Sprint Corp . The third-largest U.S.

Reuters November 19, 2019 02:07:02 IST
T-Mobile CEO Legere to step down next year

TMobile CEO Legere to step down next year

By Sheila Dang and Supantha Mukherjee

(Reuters) - T-Mobile US Inc Chief Executive Officer John Legere will step down next year, the company said on Monday, less than three weeks before it goes to trial to determine the fate of its planned $26.5 billion merger with smaller rival Sprint Corp .

The third-largest U.S. wireless carrier will go to trial on Dec. 9 to fight a state attorneys general lawsuit that alleges the merger would be harmful to consumers.

T-Mobile said Legere will remain CEO until April 30, and will be succeeded by President and Chief Operating Officer Mike Sievert. Legere will continue to be a member of T-Mobile's board.

Legere, the outspoken architect of the marketing and business strategy that helped T-Mobile become known as an innovator in the wireless industry, said the succession plan had long been in the works.

"A CEO with a board that doesn't have a good succession plan, fails," Legere said on a conference call with analysts. "It's Mike's time. He's ready."

T-Mobile remains focused on closing the merger with Sprint, Legere said.

"I feel quite good that we have the basis for settling this deal, and I feel equally good, if not better, about winning this trial," he added.

T-Mobile has also been in talks with Sprint to extend their merger agreement, which had expired Nov. 1. A reduced price for Sprint could potentially be part of the negotiations.

Legere said Monday the company's shareholders were working on a new agreement, but said he could not provide a timeframe.

Legere also said he had never been in discussions to run WeWork, saying the news reports had created an "awkward period of time" for T-Mobile. Japan's Softbank Group Corp <9984.T> is the controlling shareholder for both Sprint and WeWork.

Sievert, also a member of T-Mobile's board, has worked alongside Legere for the last seven years.

"It has been widely expected for some time that John would exit next year, so this won’t come as a shock to anyone," said Craig Moffett, an analyst at MoffettNathanson. "And Mike has always been extremely highly regarded by the investment community. I expect they’ll make the transition without missing a beat."

Shares of T-Mobile were little changed at $78.23 in afternoon trading, while Sprint was up 1.03%.

(Reporting by Supantha Mukherjee, Sheila Dang, Munsif Vengattil and Diane Bartz; Editing by Sriraj Kalluvila, Anil D'Silva and Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News &amp; Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News &amp; Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.