AT&T to Buy T-Mobile USA
source: http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?mod=WSJ_hp_mo...
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AT&T Inc. agreed to buy T-Mobile USA from Deutsche Telekom AG for $39 billion in cash and stock, in a deal that would create the biggest U.S. wireless carrier by subscribers and fundamentally alter the industry's competitive landscape.
Under the deal, the companies said AT&T will pay $25 billion in cash and the balance in stock, giving T-Mobile's German parent an 8% stake in AT&T.
The deal comes as AT&T is looking for growth after losing its exclusive hold on Apple Inc.'s iPhone in the U.S. and as Deutsche Telekom was actively looking at alternatives for T-Mobile. Those options included recent discussions around a possible sale of the business to Sprint Nextel Corp. or an initial public offering.
The deal would combine two operators using the same network technology and, the companies said, would alleviate spectrum shortages cropping up for each.
But the plan is likely to bring tough scrutiny from regulators, who will have to decide whether to allow a transaction that shrinks the number of major national wireless operators in the U.S. to three from four, particularly as T-Mobile has based much of its appeal on selling lower-cost service.
http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?m...
Under the deal, the companies said AT&T will pay $25 billion in cash and the balance in stock, giving T-Mobile's German parent an 8% stake in AT&T.
The deal comes as AT&T is looking for growth after losing its exclusive hold on Apple Inc.'s iPhone in the U.S. and as Deutsche Telekom was actively looking at alternatives for T-Mobile. Those options included recent discussions around a possible sale of the business to Sprint Nextel Corp. or an initial public offering.
The deal would combine two operators using the same network technology and, the companies said, would alleviate spectrum shortages cropping up for each.
But the plan is likely to bring tough scrutiny from regulators, who will have to decide whether to allow a transaction that shrinks the number of major national wireless operators in the U.S. to three from four, particularly as T-Mobile has based much of its appeal on selling lower-cost service.
http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?m...
