March 20, 2011
According to a release on the AT&T website, the company is acquiring T-Mobile USA looking to enhance their network capacity, output and quality in the near term for both companies’ customers. The deal is worth an estimated $39 billion in cash and stock. The breakdown is as follows: $25 billion in cash and $14 billion in stock, giving T-Mobile an 8 percent stake in AT&T when all is said and done. Of course, the deal still has to pass through regulatory agencies and make it through closing. If all goes well the merger will mean that AT&T will have an estimated 130 million mobile subscribers. The deal is also said to help spread the 4G LTE services. If the deal doesn’t go through, then AT&T will still owe T-Mobile a mere $3 billion which they are calling a break-up fee.
“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.
We hope this deal helps AT&T improve what we’ve seen in some pretty big markets in terms of shaky service.
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