T-Mobile Just Eliminated the Biggest Factor Holding Its Stock Price Down. It Could Skyrocket in 2024.
When T-Mobile (NASDAQ: TMUS) completed its merger with Sprint in 2020, it effectively put a cap on its stock price for the next few years.
As part of the merger agreement, Softbank (OTC: SFTB.Y) (OTC: SFTBF) forfeited 48.8 million shares of T-Mobile stock it was entitled to. However, the parties agreed Softbank would receive those shares back if T-Mobile's stock price stayed above $150 for 45 days on a volume-weighted average price basis before Dec. 31, 2025.
After continually running into resistance at $150 per share in 2023, T-Mobile shares sat above the target price for most of December. Combined with a few days where the stock traded above $150 earlier in the year, it triggered the contract. T-Mobile immediately issued 48.8 million shares worth about $7.6 billion to Softbank.
Source Fool.com
