Wednesday, March 23, 2011
AT&T Buying T-Mobile For $39 Billion
AT&T on Sunday announced that it would acquire T-Mobile from Deutsche Telekom in a $39 billion deal that will create the largest wireless carrier in the U.S. Almost immediately, AT&T started its campaign to get the deal approved by regulators. According to a report by Bloomberg News, AT&T had been in talks for sometime with T-Mobile's parent company, Deutsche Telekom, and won because it was willing to offer a higher cash component to the purchase price. AT&T was also willing to offer a higher than average breakup fee if the sale is cancelled, possibly due to regulatory requirements making it undesirable to complete on the deal.
T-Mobile and Sprint have been rumored to merge. Indeed, Sprint will need a merger partner and Verizon Wireless may be a potential option. That move would create a U.S. wireless duopoly with a bevy of smaller players. Verizon is planning to upgrade its entire nationwide network to LTE by the end of 2013. This unexpected AT&T/T-Mobile tie-up could have the effect of accelerating the 4G race in the US, which would make the American 4G networks some of the best on the planet.
For more information on the transaction, including background information and factsheets, visit www.MobilizeEverything.com.