Rumor Mill
AT&T to aquire T-Mobile Before Merger With Cingular
As an employee of at&t wireless out of sacramento, ive come across some juicey new for wireless head honchos, its come to my attention that before the merger with cingular at&t wireless is in the proceding tos aquire t-mobile to bring up the customer base 3 fold, this is not a rumor it is true info that will be brought to public notice in three months..... keep you guys posted on any info that spurs from this situation.
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lclcvgrep said:
As an employee of at&t wireless out of sacramento, ive come across some juicey new for wireless head honchos, its come to my attention that before the merger with cingular at&t wireless is in the proceding tos aquire t-mobile to bring up the customer base 3 fold, this is not a rumor it is true info that will be brought to public notice in three months..... keep you guys posted on any info that spurs from this situation.
Now how would the Justice Department respond to that?
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Pardon my skepticism, but how exactly would something like that be such a well kept secret, and in the unlikely event that it were true, why would someone so deeply "in the know" jeopardize it by posting here? Also... T-Mobile USA is one of the only profitable branches of Deutsche Telekom AG, a worldwide wireless company. It is also the fastest growing wireless carrier in the US right now, netting another million new customers for the second quarter in a row. It is difficult to believe that Deutsche Telekom would let it go.
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JDigital said:
Pardon my skepticism, but how exactly would something like that be such a well kept secret, and in the unlikely event that it were true, why would someone so deeply "in the know" jeopardize it by posting here? Also... T-Mobile USA is one of the only profitable branches of Deutsche Telekom AG, a worldwide wireless company. It is also the fastest growing wireless carrier in the US right now, netting another million new customers for the second quarter in a row. It is difficult to believe that Deutsche Telekom would let it go.
I agree. The company is very quicky shedding off all the debt if acquired building up its infrastructure in the US. Why would it do anything to jeopardize that?
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Also keep in mind if this buyout of T-mo DOES go through.. lclcvgrep will be guilty of violating either a NDA (non-disclosure agreement) or possibly even inside trading if people here buy up T-mo stock and ATTWS buys T-mo.
Personally I believe JDigital is right. Why would Deutsche Telekom sell their only profitable wireless branch in the USA?
Personally I believe JDigital is right. Why would Deutsche Telekom sell their only profitable wireless branch in the USA?
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I agree the merger idea is not true. TMobile is anything but profitable. Read the earning's report. TMobile is losing money.
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southwestcomm said:
I agree the merger idea is not true. TMobile is anything but profitable. Read the earning's report. TMobile is losing money.
Actually Tmobile has been able to lighten its debt load considerably in the last two years.
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Yes, that is true. TMobile is still losing money every quarter. They also have the second highest churn rate in the industry.
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southwestcomm said:
Yes, that is true. TMobile is still losing money every quarter. They also have the second highest churn rate in the industry.
Well, it must be losing less and less money as time goes on, 'cause I've noticed their debtload shrinking as well.
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🤣 @ t-mobile having the highest churn rate in the industry
hell if we are losing so much money, why are we doubling our retail stores in houston and numerous other markets... gee it seems like we are losing so much money were are building more (sarcasm)
in the last couple of quarters, t-mobile has made a lot of profit thanks to the customer base growing in leaps and bounds
hell if we are losing so much money, why are we doubling our retail stores in houston and numerous other markets... gee it seems like we are losing so much money were are building more (sarcasm)
in the last couple of quarters, t-mobile has made a lot of profit thanks to the customer base growing in leaps and bounds
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Starr06 said:I think he's referring to the fact that Tmobile is still losing money in the USA, just not as much. And as they keep losing less and less money (due to adding more subscribers), eventually they'll get in the black. But that certainly won't keep them from building more direct stores.
🤣 @ t-mobile having the highest churn rate in the industry
hell if we are losing so much money, why are we doubling our retail stores in houston and numerous other markets... gee it seems like we are losing so much money were are building more (sarcasm)
in the last couple of quarters, t-mobile has made a lot of profit thanks to the customer base growing in leaps and bounds
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I can tell you one thing, working for AT&T, we would not purchase T-Mobile - it has been nothing but an ongoing battle with them and roaming agreements. At this point in time, virtually no Cingular or AT&T subscribers can even roam on their network. Too bad same situation vice versa, bummer for T-Mobile!
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Not to mention, going after T-Mo during the buyout period would be ridiculous. It would effectively create a monopoly GSM carrier once the buyout is complete, with Cingular owning the networks of T-Mo and ATTWS. There is not even a remote chance that the FCC and DOJ woukd allow this to happen. ATTWS simply could not allow that to happen...their shareholders are happy as they can be with the windfall they get from the Cingular offer.
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phonepimp3376 said:
Not to mention, going after T-Mo during the buyout period would be ridiculous.
No, no, no.
The whole point of the rumor was that AT&T Wireless had, in a secret deal, already made the buyout, and were going to announce it later.
No messy FCC or DOJ interference, no consumer input, no messy stockholder meetings-- just a supersecret backroom deal that our source just happened to hear of.
With some half-decent marketing, this could become a major urban myth. You gotta love it.
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Not true. T-Mobile is not looking to merge or be bought out by anyone. I mean for the last two quarters we have added 1 million+ customers back to back. Like the others said, we are way too profitable for DT to let us go. That's committing suicide 🤣
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The entire point is moot. Cingular will have enough problems with regulators because of owning multiple licenses in markets. It is inconceivable that the FCC which forced Verizon to sell off licenses where there was duplication would allow ATTWS/T-Mo/Cingular to own as much as 120MHz of spectrum in any market.
As it is when the dust settles in the pending buyout many carriers will be made very happy and very rich.
As it is when the dust settles in the pending buyout many carriers will be made very happy and very rich.
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No way this happens! (Thank goodness!) Cingular was seeking a merger partner long before the AWS buyout. T-Mobile was a possibility but DT wanted too much authority in the new company. SBC and BellSouth aren't about to share more than they already are with one another. The acquisition of AWS makes T-Mobile far less attractive unless DT is willing to sell outright, which they would be fools to do. If I were DT, I'd hang around simply because the FCC is sure to force the new Cingular giant to divest itself of some of it's spectrum (just as happened to Verizon) and T-Mobile can be there to buy that spectrum at an extremely reasonable price no doubt. I can see T-Mobile possibly attempting to buy out a smaller fish, such as Triton tho...
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As a current wireless store owner, and a former Financial Advisor, I'm pretty familiar with mergers and procedures associated with them. From AT&T's standpoint, WHY would it propose to buy T-Mobile? The terms of the Cingular deal are already outlined. I believe Cingular's parent co's, SBC and BellSouth will pay $15/share for AT&T Wireless stock.
Why would AT&T do ANYTHING at this point? Their share price is fixed at $15 till the Cingular buy-out is finalized, not to mention, buy-outs don't happen overnight. They reported the first ever net subscriber loss a quarter ago, but it really doesn't matter to them. From an investment standpoint, AT&T Wireless stock is worth $15, or whatever Cingular agreed to pay, and not a penny more or ...
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Why would AT&T do ANYTHING at this point? Their share price is fixed at $15 till the Cingular buy-out is finalized, not to mention, buy-outs don't happen overnight. They reported the first ever net subscriber loss a quarter ago, but it really doesn't matter to them. From an investment standpoint, AT&T Wireless stock is worth $15, or whatever Cingular agreed to pay, and not a penny more or ...
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