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AT&T Buys T-Mobile

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T-Mobile USA is about to become an arm of the AT&T Inc. as the phone giant has agreed to buy the Deutsche Telekom AG company.

The transaction is in a cash and stock one that is valued at around $39 billion and the acquisition will make the two the largest mobile phone company.
So the company will get $25 billion in cash and the rest in AT&T stock which will be subject to adjustment.

That should give the Dutch company an 8 percent stake in AT&T and will bring in DTE members to the board of directors.

There will be some hurdles to climb regarding the regulatory end as this makes AT&T the primary wireless operator surpassing Verizon Wireless.

Industry analysts are a bit surprised at the deal and rightly so. The technological and social implications are astounding. The expansion will allow for a faster expansion of a wireless web.

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The FCC and other regulatory bodies will still have to approve the deal and there is sure to be a battle of some sort along the way or down the road. The fear of less competition giving such a giant company control over prices and services arose immediately.

It’s something that consumers, government, and industry analysts will be scrutinizing no end. Even if AT&T does get the green light it doesn’t mean they’re free to do as they choose.

Not long ago such huge companies were broken up and now it appears they’re coalescing again but only time will tell.

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