US Cellular Outlines Leadership and Rebranding Plans Post-T-Mobile Transaction

United States Cellular plans to rebrand as Array Digital Infrastructure after its wireless operations sale to T-Mobile closes by August 1. Douglas Chambers will become interim President and CEO, overseeing the company's 4,400 towers, investment stakes, and wireless spectrum. Analysts forecast an average target price of $73.11, with a potential upside of 2.25% from the current price of $71.50.

United States Cellular Corporation (NYSE: USM), known for its wireless services, has announced significant developments ahead of its expected sale of wireless operations to T-Mobile US, Inc. The transaction, scheduled to close on August 1, 2025, subject to satisfaction of closing conditions, brings two key changes: the appointment of Douglas W. Chambers as interim President and CEO, and a planned rebranding to Array Digital Infrastructure, Inc. [1]

Chambers Takes the Helm

Douglas W. Chambers, currently serving as Executive Vice President, Chief Financial Officer, and Treasurer of UScellular, will lead the post-closing business as its interim CEO. He will oversee the company's portfolio of 4,400 owned towers, noncontrolling investment interests, and retained wireless spectrum. His appointment reflects his extensive industry experience and deep understanding of UScellular's operations and strategy [1].

Rebranding to Array Digital Infrastructure

Post-closing, the company will adopt the new legal name Array Digital Infrastructure, Inc. This rebranding is part of a broader strategic shift, aimed at positioning the company as a key player in digital infrastructure. The company's NYSE ticker symbol will also change from "USM" to "AD" for its Common Stock [1].

Analyst Forecasts

Analysts have forecast an average target price of $73.11 for the company, with a potential upside of 2.25% from the current price of $71.50. This reflects investor optimism following the rebranding and the expected operational improvements under Chambers' leadership [2].

Special Cash Dividend

In a separate development, UScellular's board of directors is expected to approve a special cash dividend ranging from $22.50 to $23.75 per Common Share and Series A Common Share following the completion of the wireless operations sale. This dividend, amounting to between $1.95 billion and $2.075 billion, is contingent upon the transaction's successful closure [2].

Leadership Changes at Parent Company

Telephone and Data Systems, Inc. (NYSE: TDS), the parent company of UScellular, has also announced significant leadership changes. Ken Dixon has been appointed as the new President and CEO of TDS Telecommunications LLC, succeeding Jim Butman. Dixon brings extensive experience from his previous role at Verizon Communications [3].

References

[1] https://www.prnewswire.com/news-releases/uscellular-announces-expected-name-change-to-array-digital-infrastructure-302513553.html
[2] https://www.investing.com/news/company-news/uscellular-to-become-array-digital-infrastructure-upon-tmobile-deal-close-93CH-4152267
[3] https://aijourn.com/uscellular-announces-expected-name-change-to-array-digital-infrastructure/