T-Mobile US Inc. (NASDAQ:TMUS)announced on Wednesday that entered into a definitive agreement to acquire TV technology manufacturer, Layer3 TV Inc. T-Mobile is looking into launching a new TV service in 2018, and its acquisition of Layer3 can help achieve the goal.
“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!”
“Together with T-Mobile, we’re going to ditch everything you hate about cable and make everything you love about TV better.” said Jeff Binder, CEO of Layer3 TV.
T-Mobile is the third largest U.S. communication companies, but its growth is hindered by its competitors as they have already shifted into other aspects of the industry as well as offering cheaper and larger data plans.
With this acquisition, T-Mobile now joins other telecom companies such AT&T and Verizon and their shifts into the media industry. AT&T started online TV service DirecTV and currently has over 1 million subscribers, but it’s recent acquisition for Time Warner was blocked the Department of Justice saying that it’ll create an unfair advantage. Verizon is also looking to start its own TV service.
“We’re in the midst of the Golden Age of TV,” said Mike Sievert, Chief Operating Officer of T-Mobile.
Financial details were not disclosed in the statement. The transaction is expected to close within the next few coming weeks.