Near the end of last year, T-Mobile announced that it was buying Layer3 TV, an online television provider. T-Mobile said that it wanted to "un-carrier" the TV industry by offering its own service, and purchasing Layer3 was the first step. T-Mobile's acquisition of Layer3 is now complete, according to a press release from today.
The announcement, unfortunately, doesn't have any details about T-Mobile's future TV plans. John Legere, President and CEO of T-Mobile, said in a statement, "I can’t wait to take the fight to Big Cable and Satellite TV on behalf of consumers everywhere!" The company's new TV team will be led by Jeff Binder, the CEO of Layer3. Binder is also joining T-Mobile's Senior Leadership Team.
For the moment, Layer3 isn't changing. T-Mobile said it will continue to maintain the TV subscription while it works on a new product, and some retail stores start adding Layer3 demo units in the coming weeks. As of March 2017, Layer3 had about 13 million subscribers, and was the fourth-largest cable TV provider in the United States.
PRESS RELEASE
Bellevue, Washington — Jan. 23, 2018 — Today, T-Mobile US, Inc. (NASDAQ: TMUS, “T-Mobile”) announced the completion of its acquisition of Denver-based television innovator Layer3 TV, Inc. The talented Layer3 TV team has joined T-Mobile and will drive the Un-carrier’s initiative to launch a disruptive new TV service in 2018. To be the first to know about T-Mobile’s new TV service when it launches, consumers – even AT&T and Verizon customers – can sign up at www.t-mobile.com/tv, and they’ll also get an exclusive offer when the new solution launches in their area.
On December 13, 2017, T-Mobile unveiled its plans to Un-carrier your TV, fueled by the talent and technology from Layer3 TV. The reaction was overwhelming. Fans shared the news so much on social media that it was seen more than half a billion times – coinciding with a drop in Charter and Comcast stock on the day. Consumers are clearly fed up with Big Cable and Satellite TV, America’s #1 most hated industry.
“We know people love their TV, but hate their TV providers. But, the reaction to our announcement last month took even me by surprise. People are ready for choice and change! Well, good news ‘cause that’s exactly what we’re gonna bring!” said John Legere, President and CEO of T-Mobile. “I can’t wait to take the fight to Big Cable and Satellite TV on behalf of consumers everywhere!”
The mobile Internet is the Internet now, and that’s causing a huge wave of tech convergence, where wireless, wireline and cable technologies and capabilities are all coming together. With the introduction of 5G, that’s all going to massively accelerate, which makes now the right time for T-Mobile to disrupt the entertainment space. T-Mobile is creating TV for people who love TV and that will work over any Internet connection – landline or mobile, even those slower ones from AT&T and Verizon.
T-Mobile’s new TV team will be led by Jeff Binder, CEO of Layer3 TV, who has joined T-Mobile as an Executive Vice President and part of the Senior Leadership Team, reporting to T-Mobile’s Chief Operating Officer, Mike Sievert. Jeff is joined by nearly 200 Layer3 TV employees including his executive leadership team including Lindsay Gardner, former President of Distribution at Fox; Dave Fellows, former CTO of Comcast and AT&T Broadband; Amos Smith, former SVP and CFO of Time Warner Cable Residential Services; and Gregg Grigaitis, former SVP Products of Suddenlink.
For more information and to sign up to be the first to know about T-Mobile’s new TV service and get an exclusive launch discount, visit www.t-mobile.com/tv. While the Un-carrier develops its new TV service, the existing Layer3 TV product will be available to demo or purchase in select T-Mobile stores in Chicago, Dallas, Denver, Los Angeles and Washington, D.C. starting in the coming weeks.
The acquisition is not expected to impact previously announced company guidance or expectations.
