AT&T/T-Mobile Deal: DEAD
As if its DOA status wasn’t already apparent to anybody who’s paid attention to the issue in the past month or so, the prospective merger between AT&T and T-Mobile has gone the way of the dinosaur.
AT&T toe-tagged the deal earlier today with a press release, which was posted on their website, that said they have agreed with Deutsche Telekom AG, T-Mobile’s parent company, to end the bid for acquisition. Typical of all sore losers, AT&T did not shy from indicating who it believed were the villains that prevented them from prevailing in this corporate drama:
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.
According to All Things D, AT&T will “have to pay a giant breakup fee to Deutsche Telekom” on top of eating the cost of all the legal costs the company has already put forth during its efforts to acquire T-Mobile. The Wall Street Journal adds that AT&T “will record a $4 billion pretax accounting charge in the fourth quarter, to reflect the value of the breakup fee it owes to Deutsche Telekom” but that it will work with Deutsche Telekom to develop a “mutually beneficial” roaming agreement.