AT&T Tucks Its Tail Between Its Legs, Abandons T-Mobile Acquisition
December 19, 2011 4:50 PM
comment(s) - last by
AT&T likely bit off more than it could chew
In the past few weeks, it's becoming increasingly clear that AT&T was facing an uphill battle with regards to its wishes to
acquire T-Mobile for $39 billion
. Today, finally AT&T realized that its efforts were likely futile considering that it was getting plenty of pushback from both the
Department of Justice
The company announced in a statement that it is giving up its quest to purchase T-Mobile:
The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.
As witnessed by AT&T's statement above, the company is confident that the FCC and the DOJ have made a big mistake by blocking the merger and contends that customers will be the ones that will be hurt in the long run.
AT&T chairman and CEO Randall Stephenson [Source: International Business Times]
“AT&T will continue to be aggressive in leading the mobile Internet revolution,” said Randall Stephenson, AT&T chairman and CEO. “To meet the needs of our customers, we will continue to invest. However, adding capacity to meet these needs will require policymakers to do two things.
“First, in the near term, they should allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry, including expeditiously approving our acquisition of unused Qualcomm spectrum currently pending before the FCC. Second, policymakers should enact legislation to meet our nation’s longer-term spectrum needs."
As a result of the agreed upon "breakup" fee, AT&T will now have to pay $4 billion to T-Mobile parent company Deutsche Telekom AG.
This foreseeable outcome became even more clear this morning when
The Wall Street Journal
reported that AT&T was
having difficulty in selling over 30 percent of the assets
in the proposed $39 billion deal to Leap Wireless International Inc., Dish Network Corp., and MetroPCS Communications Inc.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: A Dish Best Served Cold
12/19/2011 9:49:01 PM
Grew out nothing? DT bought Voicestream/Powertel for over $50 billion and rebranded it...and Voicestream itself was just a bunch of patched together regional carriers and the old Sprint Spectrum network. And all their hardwork and additional money invested resulted in a company worth just under 4/5 as much as their original investment. Yeah....they're a "unique player" and "successful".
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
AT&T's Efforts to Sell Off T-Mobile Assets Stall
December 19, 2011, 11:18 AM
AT&T Has $8.8B Extra to Convince Gov't, Rivals to Close T-Mobile Deal
December 8, 2011, 9:02 AM
DOJ Files Paperwork to Kill AT&T/T-Mobile Merger; AT&T, Sprint Respond
August 31, 2011, 11:21 AM
AT&T to Buy T-Mobile for $39 Billion USD
March 20, 2011, 2:52 PM
Microsoft "Hopes" Developers Will Make Xbox One Games Unplayable Offline
May 24, 2013, 12:13 PM
Federal Judge Sides with U.S. DOJ in Apple E-Books Preliminary Hearing
May 24, 2013, 11:46 AM
HTC Considers "Senseless" One Smartphone
May 24, 2013, 8:00 AM
HTC One Hits 5 Million Sales in First Month, Despite Issues
May 23, 2013, 4:04 PM
HTC First's Arrival in UK Canceled, Facebook Assesses "Home" Feedback
May 23, 2013, 3:02 PM
Microsoft Expands Windows Azure in Asia, Mocks iPad in New Commercial
May 23, 2013, 12:06 PM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Apples Tries to Use Decade-Old Patents to Ban Samsung Galaxy S IV
May 22, 2013, 3:00 PM
NASA Awards $125,000 Grant for 3D Printed Food on Long-Term Space Travels
May 21, 2013, 1:32 PM
Microsoft Announces Voice-Controlled "Xbox One"
May 21, 2013, 12:55 AM
Cure For Baldness Could Be on Store Shelves within Two Years
May 22, 2013, 8:29 AM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information