AT&T / T-Mobile Merger Hits A Justice Department-Sized Snag

rated by 0 users
This post has 11 Replies | 1 Follower

Top 10 Contributor
Posts 25,797
Points 1,163,335
Joined: Sep 2007
ForumsAdministrator
News Posted: Wed, Aug 31 2011 11:34 AM
Well, this isn't looking good for those already planning to attend the marriage of T-Mobile USA and AT&T.

While it was starting to look as if the proposed merger would end with the two holding hands and riding off into the sunset, things have taken a dramatic turn today. The U.S. Department of Justice filed court papers in Washington to block the $39b acquisition, suggesting that the deal would "substantially lessen competition" in the market. Not surprisingly, AT&T's shares dropped 5 percent.

That's probably because AT&T will be forced to pay T-Mobile's parent company (Deutsche Telekom AG) a staggering $3 billion if this doesn't go through, and would need to sell a ton of iPhone plans to make up that loss. The filing said the following: "AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market." This isn't the end of the journey, not by a long shot, but it's clear that AT&T has a battle on their hands now.


Despite promising that 5000 U.S. jobs would be created if the merger happened, other reports suggested that T-Mobile was already preparing severance plans in case things worked out. Either way, this shows that the government is indeed paying attention, and that antitrust law is still a big deal.
  • | Post Points: 140
Top 500 Contributor
Posts 161
Points 1,390
Joined: Jan 2010
Location: Texas City
detnight replied on Wed, Aug 31 2011 1:21 PM

Great, I do not want to lose my T- Mobile. I have had TMobile since they were two companies or name changes before T- Mobile.

Asus M4A79T deluxe,AMD Athlon II X4 620,PNY GTX285 1gb,Patriot Viper DDR3 1333 8gb,Creative Sound Blaster X-Fi Titanium Fatal1ty Pro,Diamond ATI TV Wonder HD 650 Comb,Plextor DVD-CD burner,Patriot PS-100 SSD 32gb ,WD 500gb 32mg,Antec Twelve Hundred Full Tower,Antec True Power Quattro 1000watts,Toshiba 40in 1080p for a monitor

  • | Post Points: 5
Top 25 Contributor
Posts 3,466
Points 46,975
Joined: Nov 2005
Location: Metropolis
ForumsAdministrator
Moderator

(Front page click HERE to see YouTube history of AT&T explained)

 SPAM-posters beware! ®

  • | Post Points: 5
Top 150 Contributor
Posts 467
Points 3,710
Joined: Feb 2011

This is great news, again I am with AT&T and am totally against the merger.

You talk about a monopoly if this were to be allowed.

Way to grow a pair DOJ. Bravo indeed.

  • | Post Points: 5
Top 10 Contributor
Posts 4,816
Points 45,645
Joined: Feb 2008
Location: Kennesaw
rapid1 replied on Wed, Aug 31 2011 5:38 PM

This was forwarded to me earlier today and of course I posted it shortly thereafter it started coming into my email from other places (I originally got it from Sarah). This is good as the whole thing is it is so true At&t was just trying to kill some competition and there was no real reason for them to take over T-Mobile other than killing competition.

OS:Win 7 Ultimate 64-bit
MB:ASUS Z87C
CPU:Intel(R) Core(TM) i7 4770 ***
GPU:Geforce GTX 770 4GB
Mem:***ingston 16384MB RAM
  • | Post Points: 5
Top 50 Contributor
Posts 3,236
Points 37,910
Joined: Mar 2010
AKwyn replied on Wed, Aug 31 2011 7:12 PM

This was mostly expected. Tons of people are against this merger and it was only a matter of time before the Justice department said that this merger would hamper competition.

In any case, I can't wait to see how this unfolds.

 

"The future starts with you; now start posting more!"

  • | Post Points: 5
Top 50 Contributor
Posts 2,865
Points 29,645
Joined: Mar 2011
Location: United States, Connecticut

Hmm a 3b dollar infusion into T-mobile... What will that mean for that company that is the question. I am sure a huge portion of it will go to bonuses...

  • | Post Points: 35
Top 25 Contributor
Posts 3,466
Points 46,975
Joined: Nov 2005
Location: Metropolis
ForumsAdministrator
Moderator

omegadraco:
Hmm a 3b dollar infusion into T-mobile... What will that mean for that company that is the question.

How much is AT&T going to up it's rates to pay that $3B - that is the question!Stick out tongue

 SPAM-posters beware! ®

  • | Post Points: 5
Top 10 Contributor
Posts 8,571
Points 103,110
Joined: Apr 2009
Location: Shenandoah Valley, Virginia
MembershipAdministrator
Moderator
realneil replied on Wed, Aug 31 2011 11:05 PM

Super Dave:
How much is AT&T going to up it's rates to pay that $3B - that is the question!

Yeah, those buttheads throw money around like ~we've~ got it or something!!

Virgin Mobile-Pay as you go. 'nuff said,.....Smile

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

  • | Post Points: 5
Top 100 Contributor
Posts 1,085
Points 10,995
Joined: Jun 2010
Location: Pennsylvania
CDeeter replied on Wed, Aug 31 2011 11:49 PM

$3 billion? Ouch! That's gonna leave a mark!

Not a great time to be losing that kind of cash.

  • | Post Points: 5
Top 10 Contributor
Posts 4,816
Points 45,645
Joined: Feb 2008
Location: Kennesaw
rapid1 replied on Thu, Sep 1 2011 2:15 PM

"if the merger falls through AT&T still owes T-Mobile $3B USD in cash, $2B USD in spectrum, and $1B in roaming coverage"

Looks more like 6 billion and I thought the cash was 3.8 billion as well so closer to $7 billion which will at the least pinch a few hundred bonuses.

OS:Win 7 Ultimate 64-bit
MB:ASUS Z87C
CPU:Intel(R) Core(TM) i7 4770 ***
GPU:Geforce GTX 770 4GB
Mem:***ingston 16384MB RAM
  • | Post Points: 5
Not Ranked
Posts 66
Points 555
Joined: Apr 2011

It'll be interesting to see how this shakes out.. very interesting

  • | Post Points: 5
Page 1 of 1 (12 items) | RSS