This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
The week's off to a big start from T-Mobile (NASDAQ:TMUS )as the company has announced major shifts for its management today. T-Mobile's current CEO John Legere has confirmed that he was never in talks with WeWork for a top-role at the struggling real-estate company, and he's also announced that after his contract expires in April next year, T-Mobile's Chief Operating Officer Mike Sievert will take the top role at the company.
T-Mobile's COO Mike Sievert States AT&T And Verizon Have ''No Idea" What's In Store For Them
Prior to today's conference call, T-Mobile Form 8K highlighted the big management shifts due to take place at the company for over the course of the next six months. The big news of the day is, as we reported earlier, that T-Mobile's current CEO John Legere is set to step down as the company's CEO after his contract ends in April next year. He will, however, continue to sit on T-Mobile's board of directors.
Mr. Legere will be replaced by Mr. Sievert, and the latter sounded optimistic about T-Mobile's future at the carrier's conference call that took place earlier today. Following his soon-to-be-predecessor Mr. Legere's brazen attitude, Mr. Sievert explicitly stated that ''AT&T (NYSE:T) and Verizon (NYSE:VZ) have no idea what's coming to them," after the carrier's merger with Sprint follows through and offers T-Mobile greater operating scales and lower costs.
The conference call surrounded T-Mobile's current management shifts and how they're to impact the company's future. For the time being, the carrier's incumbent CEO John Legere will oversee the merger, which is currently facing opposition from several state attorney generals. Commenting on this, Mr. Legere and Mr. Sievert sounded optimistic, but the former deliberately avoided answering questions on what the current state of T-Mobile's talks with the attorneys is.
The only statement that analysts were able to get out of him is, "[Uncarrier] was very well received by the AGs", with Mr. Legere previously having deflected the question by stating that first responders and low-income families being very enthusiastic towards Uncarrier.
T-Mobile's chief operating officer Mike Sievert wants to build a network fourteen times larger than the one T-Mobile currently operates. While the carrier's management is positive about its merger with Sprint (NYSE:S) completing successfully, in the odd case that it doesn't go through, Mr. Sievert intends to follow textbook approaches such as share buybacks and scanning the market for other spectrum enhancing opportunities.
Further commenting on the merger and its timing in regards to the carrier's latest management shift, Mr. Legere stated that he'd expected the Sprint/T-Mobile deal to have finished six months ago. The outgoing executive hopes to settle the attorney generals' concerns and set up the new T-Mobile before departing at the end of April next year.
T-Mobile (NASDAQ:TMUS) has no plans to replace its CFO J. Braxton Carter right now, and as per the carrier's 8K filed today, Mr. Carter's employment has been extended through July 1, 2020. For his part, Mr. Legere hinted that he might take up a new role in a company requiring a similar cultural transformation like the one that he spearheaded at T-Mobile.
Mr. Sievert's annual salary will increase to $1,400,000 starting January next year, and the executive will also be entitled to a one-time payment of $3,500,000 based on certain conditions. T-Mobile is trading at $77.76/share today, down 0.33% from Friday's closing.