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AT&T to Owe T-Mobile $6 Billion if Acquisition Fails

Article Comments  15  

May 12, 2011, 5:06 PM   by Eric M. Zeman
updated May 12, 2011, 5:30 PM

Citing unnamed sources, Reuters today reported that if AT&T's proposed acquisition of T-Mobile falls through, it will owe T-Mobile a total of $6 billion in cash and assets. The amount would be payable by $3 billion in cash, $2 billion in spectrum, and about $1 billion in new roaming agreements. AT&T had previously disclosed that it would owe T-Mobile $3 billion if the deal collapses, but hadn't put a dollar value on the spectrum and roaming components, which effectively double the amount originally reported. AT&T and T-Mobile made their initial case to U.S. lawmakers on Wednesday. The deal needs to be approved by the Department of Justice and the Federal Communications Commission.

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Azeron

May 12, 2011, 6:58 PM

Cool

I think the merger should be nixed. Sounds like a major win for T-Mobile if it were.
🙄
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I completely agree with you Azeron. Honestly I don't see how this merger would help ANYONE besides AT&T. Would be nice to see the "little guy" win in the end for once.
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it's possible att is backpedaling.

they originally nixed their roaming agreement with tmobile, they thought they had enoguh coverage and didnt want to continue payin tmobile everytime one of their subs used a tmobile tower.

now they're kicking t...
(continues)
nextel18

May 12, 2011, 6:09 PM

yea

Yea they will owe a lot of the merger doesnt work out. i wouldnt make such a risk but they obviously see some great opportunities. it might be more than $6b if this merger gets approved. why? overlapp
Regardless, AT&T has deep pockets.
A monopoly on GSM helps absolutely no one.
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carmodboy99

May 12, 2011, 6:27 PM

Slow News Day, huh?

This isnt even recycled news.... 🙄
The scroll past it. 🙄
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