AT&T To Buy T-Mobile For $39 Billion

AT&T To Buy T-Mobile For $39 Billion

Rueters has announced that America’s least favorite network, AT&T, plans to buy T-Mobile USA for $39 billion. The deal would make AT&T (gasp) the largest mobile carrier in the US. 

“This is a unique opportunity.”  said AT&T’s CEO Randall Stephenson, “It’s rare you have a transaction where the synergies are greater than the price paid.”

This deal isn’t sealed.  Even though AT&T and T-Mobile have both approved the deal, it will require federal approval.  “I think it could reach some level of controversy,” said an antitrust expert, who worked for the Justice Department’s antitrust division. “There’s going to be spectrum issues. This is going to be a complex deal and I don’t think it’s a foregone conclusion that it will be approved.”

If approved, AT&T will purchase T-Mobile with $25 billion cash, $14 billion of AT&T common stock and 500 rollover minutes.

From the Press Release:
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO. “It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.”

AT&T and T-Mobile will hold a conference call tomorrow morning at 8am ET.  I wonder how long the call will last before it’s dropped.

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