Deutsche Telekom appears to be pushing forward its plans for a merger with its US subsidiary, T-Mobile. This development was reported by the newspaper “Handelsblatt,” citing four sources familiar with the corporate environment and the industry.
According to these sources, Telekom CEO Timotheus Höttges has commissioned a small team of specialists to work on the major deal. The objective is to unite Deutsche Telekom and T-Mobile under a holding company. The intensity of these efforts has recently increased.
This renewed focus is reportedly driven by the initial public offering (IPO) of Elon Musk’s satellite company, SpaceX. SpaceX’s Starlink satellite network is viewed as a potential mega-competitor in the mobile service sector. With a market capitalization of approximately two trillion US dollars, SpaceX significantly outpaces both Telekom and its US subsidiary currently. In comparison, T-Mobile recently reached a valuation of nearly $200 billion, while Deutsche Telekom was valued at close to €130 billion.
News agencies Bloomberg and “Handelsblatt” initially reported on these plans in late April. Since then, Höttges has allowed the strategy to be refined. A high-ranking Telekom manager from Bonn told “Handelsblatt,” “Elon Musk gives us cause for concern.” A spokesperson for Deutsche Telekom declined to comment when approached for a statement. At one point, SpaceX was unavailable for comment.
