TDS Board Announces Unanimous Support for Sale of UScellular's Wireless Operations and Select Spectrum Assets to T-Mobile

Core Viewpoint - TDS has reached a definitive agreement to sell UScellular's wireless operations and approximately 30% of its spectrum assets to T-Mobile for $4.4 billion, which includes cash and assumed debt, aiming to enhance service and shareholder value while positioning UScellular for future growth [1][2]. Transaction Details - The sale includes UScellular's wireless operations and select spectrum assets for a total of $4.4 billion, with T-Mobile expected to become a long-term tenant on at least 2,015 additional towers owned by UScellular [2][4]. - UScellular retains approximately 70% of its total spectrum assets, which provides opportunities for future monetization [2]. - The transaction is anticipated to close in mid-2025, pending regulatory approvals and customary closing conditions [4]. Financial Implications - TDS will receive proceeds from the sale in proportion to its ownership of UScellular, which may be used for fiber expansion, reducing leverage, and potentially returning capital to shareholders [3]. - TDS has declared dividends for the second quarter of 2024 at approximately 20% of the previous level for its Common Shares and Series A shares, allowing for additional capital allocation towards growth initiatives [8]. Strategic Focus - TDS remains committed to expanding its fiber footprint and improving profitability, particularly in small and mid-sized suburban and rural communities across the United States [4]. - The transaction is seen as a strategic move to integrate UScellular's operations with T-Mobile to achieve necessary scale and investment for continued customer service delivery [2].