In a strange Sunday afternoon twist, AT&T became the biggest wireless provider today, after agreeing to buy T-Mobile USA from Deutsche Telekom for a reported $39 Billion.
The news came as a surprise to many given the rumors swirling around a T-Mobile and Sprint merger. All surprise aside, the AT&T move makes more strategic sense given the similar networks. And given the huge price tag, it certainly makes sense for Deutsche Telekom to sell out now. The question remains, at $39 Billion, is AT&T over paying?
The deal has been approved by the boards of both companies, however, the deal still needs regulatory approval. Assuming approval is granted the merger could complete within 12 months.
ATT to buy T-Mobile USA for $39 bn
Yahoo! News, on Sun, 20 Mar 2011 12:32:29 -0700
NEW YORK (AFP) – AT&T agreed to buy T–Mobile USA from Germany’s Deutsche Telekom for $39 billion in a blockbuster deal in the wireless telecom sector, the two companies announced Sunday. The cash-and-stock deal has been approved by the boards of both …