T-Mobile-Layer3TV deal costs $325 million

Layer3TV, the Denver-based Multichannel Video Programming Distributor (MVPD) has officially become a part of T-Mobile as it got sold to the latter in $325 million. T-Mobile noted that the final value of the deal remains subject to customary working capital and other post-closing adjustments.

T-Mobile which is planning to use the acquisition to underpin the launch of a “disruptive new TV service” states that its service won’t be a copy of another skinny bundle of OTT TV services.

In addition to traditional pay TV operators, T-Mobile’s OTT TV will compete with a growing group of virtual MVPDs that include DirecTV Now, fuboTV, Hulu, YouTube TV, Philo, PlayStation Vue, and Sling TV.

T-Mobile’s pay-TV service is set to be a true OTT platform as consumers will be able to access the service through an internet connection.