AT&T admits defeat (for now): Pulls T-Mobile acquisition plans from the FCC

Status
Not open for further replies.
V

Vyse The Legend

Member
Also, AT&T and T-Mo's original agreement stipulated that, if the deal should fall through, AT&T would have to pay T-Mobile $4 billion. Well, they've also filed a $4 billion provisional loss for the 4th Quarter.

This doesn't mean the deal is dead; AT&T claims it's a strategic move, so that they can refocus on the trial with the Department of Justice.

But, it's not looking good for them.

The FCC's decision to request a formal administrative hearing into AT&T's proposed takeover of T-Mobile USA has caused the US carrier to take drastic action: AT&T and Deutsche Telekom have just announced that they're withdrawing their pending approval applications with the FCC. This is not to say that the companies are quitting on the deal, they specifically assert that they're "continuing to pursue the sale" of DT's US wireless assets, however AT&T's other move today is almost as significant.

The big blue mobile operator has decided to take a $4 billion pretax charge on its Q4 2011 accountancy sheet, in recognition of the risk of this deal not going through. That includes a $3 billion default payment that is due to Deutsche Telekom in the event of non-completion and an additional $1 billion in book value of spectrum that AT&T would have to give up. So, as far as AT&T's accountants are concerned, the failure of the $39 billion T-Mobile acquisition is now more likely than its success.
Click to expand...

What a lovely Thanksgiving present.

Source: The Verge
 
If they would force AT&T to offer an unlimited data plan again for around $30 I wouldn't have a problem with this deal.
 
meh, with the FCC wanting hearings as well, this was a way to have those hearings go away. If the get DoJ approval FCC approval is a formality, they will fall in line. This allows them to focus on one battle, and I don't have faith in our current system stopping this.
 
Bad news is ATT will be fine with or without T-mobile. Anyone wanting to buy them would be in as similar a position
 
gcubed said:
meh, with the FCC wanting hearings as well, this was a way to have those hearings go away. If the get DoJ approval FCC approval is a formality, they will fall in line. This allows them to focus on one battle, and I don't have faith in our current system stopping this.
Click to expand...

The DOJ is definitely the bigger of the two hurdles. The DOJ has historically only taken this course of action when they intend to win -- and they have won most of their antitrust cases.

AT&T will have to make serious concessions to push it through the system.
 
I really want AT&T to buy T-Mobile. Telekom wants out of the US, and I really don't want them to just shut it down, basically taking the money and running. That would suck.
 
notsol337 said:
I really want AT&T to buy T-Mobile. Telekom wants out of the US, and I really don't want them to just shut it down, basically taking the money and running. That would suck.
Click to expand...

I... don't think T-mobile just..."shutting down" is realistic. DT wouldn't gain anything from it (since T-mobile actually makes a profit.)


I mean, they were trying to sell it for 63 billion (?)... They obviously think it's worth a lot more than 3 billion..
 
GCbCy.png
 
zoku88 said:
I... don't think T-mobile just..."shutting down" is realistic. DT wouldn't gain anything from it (since T-mobile actually makes a profit.)


I mean, they were trying to sell it for 63 billion (?)... They obviously think it's worth a lot more than 3 billion..
Click to expand...

And now no one can buy it, coupled with the fact that every 6 months that price continues to go down. Its cutting off your nose to spite your face.
 
razgriz417 said:
Woot! So awesome that AT&T bailed, what an awesome Thanksgiving gift :)
Click to expand...


As a note, Att didn't bail at all, they are focusing everything on their trial with the DoJ. Usually when it gets to this point companies bail, att actually bucked up. Going to be interesting
 
Plus one for the consumer.

T-mo has been doing Ok enough this past couple of years, and the future looks pretty bright. I had nothing but bad experiences on AT&T and I hope they burn. If not for the iPhone they would probably have been in worse condition than T-Mo is today, and since the iPhone their service and selection has gone far downhill
 
gcubed said:
As a note, Att didn't bail at all, they are focusing everything on their trial with the DoJ. Usually when it gets to this point companies bail, att actually bucked up. Going to be interesting
Click to expand...

Oops got too excited there after reading they wrote in the $4 billion loss into their Q4, thought that meant they expected to lose
 
remnant said:
T-mobile is selling itself. It won't be around for long.
Click to expand...

DT is selling T-mobile. T-mobile isn't selling itself.

Who else has enough money to buy it that wouldn't run into anti-trust issues?

Verizon has enough money, but is also just as big as AT &T

Sprint (may) not run into anti-trust issues, but I'm not sure if they have enough money...

Everyone else in the mobile industry is smaller than T-mobile and we would end up with pretty much a status quo if someone smaller bought t-mobile (although, I doubt they also would have enough money.)

Maybe someone outside of the mobile industry would buy them? But then the consumer would still be better off than if they were sold to AT&T
 
Either another company outside of the mobile realm will buy T-Mobile or someone or a trust group big enough will invest in T-Mobile. There's no way it goes under without a fight.
 
JGS said:
Bad news is ATT will be fine with or without T-mobile. Anyone wanting to buy them would be in as similar a position
Click to expand...
What are you saying? Do you wish that this meant AT&T would fail, without this deal? So, less competition is bad, but if it means the death of a company you don't like, it's good?
 
this is too bad, i've heard from some higher up Telekom guy how the deal supposedly came to fruition, epic lol haha
 
That's good news to me.
I love my T-mo grandfathered plan and I don't want to see it go.

*MidgarBlowedUp is not a spokesperson or in anyway affiliated with T-Mobile. He just preaches the gospel truth to those that have lost their way*

$82 per month gets me :
Unlimited 2G
Unlimited Text
Unlimited 4G (5GB then throttled)
Unlimited Mobile to Mobile
Unlimited Nights & Weekend Minutes
Unlimited Calling to 5 MyFaves Numbers (Can change them once per month)
Unlimited Wireless 4G Hotspot
Wifi Calling
300 Anytime Minutes
Premium Handset Protection
No Roaming charges for voice or data or text
T-mobile MyTouch 4G Slide <-One sweet ass phone

And I always have the option to go prepay with my current android phone.
($30 for 5GB of 4G then throttled + unlimited text + 100 anytime minutes at walmart)

My bill is always the same each month and I never need to worry about any additional B.S. charges.


Sprint charges extra to Data Roam.
Verizon will nickel and dime you to death.
AT&T simply costs way too much to begin with. (85$ without text and before taxes and fees plus they charge $10 per GB if you go over 4GB per month.)
 
Clevinger said:
in yo face, Free Market, in yo face!
Click to expand...


Cell Phone Providers benefit from economies of scale, the problem with that is you end up with a few big carriers. The fewer there are, the less incentive there is to keep prices low, and the closer you get to a monopoly. So, the choice is to keep the number of carriers to a workable amount, or switch over to a price regulated system like power companies. In the case of cell providers, I think the former works better overall.
 
The last thing I want is at&t to have a monopoly on GSM service in the states, so this is good news to me. If they actually go through with that $4 billion payment to T-Mobile, that might change DT's mind.
 
Status
Not open for further replies.

Similar threads

  • Poll
UFC 313: Pereira vs. Ankalaev - T-mobile Arena - Paradise, Nevada - March 8
Poll Event  2
99
2K
ÆMNE22A!C replied
Google has removed Ublock from Chome now
Drama 
42
3K
Soodanim replied
NeoGAF's Image Button On Mobile
4
60
Lunarorbit replied
‘The Rings of Power’ Officially Renewed for Season 3, Plans Major Time Jump
39
3K
NotMyProblemAnymoreCunt replied
Australia plans to ban children from social media
2 3 4
160
9K
Cyberpunkd replied
Top Bottom