United States Cellular Stock Jumps 10% After Spectrum Deal With Verizon: Retail Cheers On

United States Cellular Corporation (USM) said on Friday it has entered into an agreement with Verizon Communications Inc. (VZ) to sell a portion of the firm’s retained spectrum licenses for total consideration of $1 billion.

At the same time, US Cellular has also entered into agreements with two other mobile network operators for the sale of other selected spectrum licenses. The company said the transactions are part of its objective to monetize the spectrum that was not included in the proposed sale to T-Mobile.

CEO Laurent C. Therivel said the firm is continuing the process to opportunistically monetize the remaining spectrum assets not included in Friday’s announcement. Shares of USM rose over 10% on Friday morning after the announcement.

As per the agreement, Verizon will sell 663 million MHz POPs of its cellular (850 MHz) spectrum licenses as well as 11 million MHz POPs of its AWS and 19 million MHz POPs of its PCS licenses for a total of $1 billion. The purchase price is payable in cash and subject to certain potential adjustments specified in the purchase agreement.

US Cellular has also reached agreements to sell a total of 12 million MHz POPs of its spectrum licenses across the CBRS, C-Band, and 700 MHz B/C Block bands to two additional mobile network operators.

CEO Therivel highlighted that a significant value for a portion of the remaining licenses will be realized. “…these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country,” he said.

Following the announcement, retail sentiment on Stocktwits for USM stock jumped into the ‘extremely bullish’ territory (84/100) from the ‘bearish’ zone a day ago.

USM shares have gained over 52% since the beginning of the year while VZ shares have returned over 12% during the period.

Also See: Ally Financial Shares Fall Premarket After Q3 Earnings Report: Retail Ignores Market Pessimism

For updates and corrections email newsroom@stocktwits.com

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