AT&T Drops bid to buy T-Mobile

Discussion in 'Off Topic Forum' started by aaf709, Dec 19, 2011.

  1. aaf709

    aaf709 Nice Guy
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    AT&T drops $39 billion bid to buy T-Mobile USA | Reuters

    (Reuters) - AT&T has dropped its controversial $39 billion bid for Deutsche Telekom's wireless U.S. unit, bowing to regulatory opposition over the deal that would have made it the largest cellphone operator in the country.

    AT&T had said it urgently needed to buy T-Mobile USA to help overcome a spectrum shortage, while Deutsche Telekom saw it as a way to exit the U.S. market to focus on its European operations. Once a cash cow, T-Mobile USA has been loosing customers.

    An agreed $3 billion break up fee to be paid by AT&T, roaming agreements with AT&T and additional mobile licenses for T-Mobile USA will soften the blow but puts Deutsche Telekom back at square one.

    I had heard they were having problems, but I guess they couldn't solve them.