AT&T's Efforts to Sell Off T-Mobile Assets Stall
December 19, 2011 11:18 AM
comment(s) - last by
AT&T looked into selling off T-Mobile assets to other carriers like Leap Wireless International, Dish Network and MetroPCS Communications
AT&T and Deutsche Telekom's attempt to sell off T-Mobile assets to other carriers in order to boost AT&T's $39 billion acquisition have stalled, making the deal seem even less likely to pull through.
AT&T entered a $39 billion deal to buy T-Mobile from Deutsche Telekom in March 2011 after Deutsche Telekom decided it wanted to exit the U.S. market. AT&T was all for it because it could get its hands on T-Mobile's wireless spectrum. However, the
U.S. Justice Department saw the deal as an anticompetitive act
, and launched a lawsuit against the mobile companies in August. The U.S. Federal Communications Commission (FCC) later joined the battle against the AT&T/T-Mobile deal.
AT&T has done almost everything in its power to save the deal, from
fighting the U.S. government in court
spending extra cash
. It looked into selling assets worth more than 30 percent of the deal's value to Leap Wireless International Inc., as well as other assets to Dish Network Corp. and MetroPCS Communications Inc.
Despite these efforts, the likelihood of the U.S. Justice Department changing its mind about the deal is slim. AT&T and Deutsche Telekom have recognized the bleak
possibility of a failed deal
, and recently put the court battle with the Justice Department on hold in an effort to seek out alternatives to the deal. AT&T even withdrew its merger application that was sent to the FCC.
AT&T and Deutsche Telekom must come up with a plan by January 18 when they meet with regulators. A couple alternatives to the merger would be a joint venture between AT&T and T-Mobile, or AT&T could leave T-Mobile alone entirely and go after a smaller carrier. But it is unclear whether the companies will continue fighting for the merger or withdraw completely.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
12/19/2011 11:49:46 AM
Can someone explain to me how at&t is trying to sell the assets of a company it doesn't even own?
12/19/2011 12:18:47 PM
Short version: AT&T works with smaller companies to finalize sales agreements for parts of the T-Mobile infrastructure and/or assets in advance. When AT$T completes the T-Mobile purchase those assets are then distributed according to the pre-existing agreements.
12/19/2011 12:24:44 PM
"AT&T's Efforts to Sell Off T-Mobile Assets Stall" is a poorly worded title. Deutsche Telekom was ready to hand AT&T the papers for T-Mobile USA in exchange for $39B, and was ready to leave America completely. Anyone with a shred of sanity objected to this, knowing full well AT&T would likely retain the bulk of the customers, probably lured by the iPhone and clever contracts.
In order for AT&T to be allowed to move forward with the purchase there has to be a plan to sell off some of the assets, including customers, to other carriers, local and/or national. The government is effectively making it difficult for AT&T to get anything other than the spectrum it claims it needs.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
AT&T Has $8.8B Extra to Convince Gov't, Rivals to Close T-Mobile Deal
December 8, 2011, 9:02 AM
AT&T Eyes Deals to Chop up T-Mobile, Amid FCC Scrutiny
November 30, 2011, 6:58 PM
AT&T Fights DOJ to Engulf T-Mobile, Gain U.S. Monopoly on GSM
September 2, 2011, 11:22 AM
DOJ Files Paperwork to Kill AT&T/T-Mobile Merger; AT&T, Sprint Respond
August 31, 2011, 11:21 AM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
Get Ready for "Microsoft Lumia" Smartphones in Next Few Months
October 24, 2014, 12:26 PM
Report: Samsung Galaxy S5 to Receive Android 5.0 Lollipop in December
October 24, 2014, 11:26 AM
Dreadful Fire Phone Sales Lead to $170M Writedown for Amazon
October 24, 2014, 8:55 AM
Xiaomi Moves Data Out of China to Woo EU, America, Escape Security Concerns
October 23, 2014, 5:11 PM
Android Wear’s First Major Update Brings GPS, Offline Music Support
October 23, 2014, 1:34 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information