T-Mobile’s Gopalan Turns to Home Internet and AI After a 25% Slide
Srini Gopalan, T-Mobile US CEO, is focusing on home internet and AI as the new growth story, following a 25% share slide. Elliott Investment Management has acquired a stake in parent company Deutsche Telekom, opposing a potential merger that could relocate the holding company out of Germany and dilute Berlin and KfW’s ownership below 25%.
Key Takeaways:
- Gopalan’s Strategy: Gopalan refuses to manage the company for short-term share price gains, instead promoting home internet and AI as the future.
- Share Performance: T-Mobile’s shares have decreased by 25% since Gopalan’s appointment last September, with second-quarter revenue missing expectations and subscriber growth declining by 13% year-over-year.
- Elliott’s Intervention: Elliott Investment Management has built a stake in Deutsche Telekom, advocating for buybacks and opposing the merger plan.
- Merger Details: The proposed merger involves a new holding company, likely incorporated outside Germany (possibly in Ireland), making an all-share bid for both T-Mobile US and Deutsche Telekom. This would reduce the German state and KfW’s joint holding from approximately 28% to around 17%.
- Executive Changes: Deutsche Telekom plans to appoint a new CFO in April 2027 and a CTO from Amazon Web Services in November. T-Mobile’s upcoming finance chief will come from Shell.
- Strategic Dilemma: Europe’s largest telecoms group is contemplating whether its most profitable asset, T-Mobile, should operate outside its jurisdiction, amidst calls for tighter regulatory control over operators.
“I am the Editor in Chief for TNW, covering technology not as a parade of launches and valuations, but as a system of influence, persuasion, and change. I write about startups, venture capital, digital policy, and Europe’s ecosystem, with an eye on the larger story beneath them.” – Ana-Maria Stanciuc