Justice Blocks AT&T / T-Mobile Merger

Published by: Frank Galvano on 31st Aug 2011 | View all blogs by Frank Galvano
ATT-logo-t-mobile.jpg
Justice Blocks AT&T / T-Mobile Merger

The US Department of Justice announced Wednesday it was filing a lawsuit to block AT&T's proposed buyout of T-Mobile USA from Deutsche Telekom to preserve competition in the US wireless market.  “The department filed this lawsuit because we feel the combination of AT&T and T-Mobile will result in tens of millions of consumers, all across the United States, facing higher prices, fewer choices, and lower-quality products for their mobile wireless services,” explained James Cole, the deputy attorney general. 

The decision to block the merger is a surprising blow to AT&T, the world's second-largest wireless carrier behind Verizon, as its CEO Randall Stephenson has predicted the merger would be approved for months.  AT&T shares fell more than 3 percent on the news, while shares of Sprint, the biggest opponent to the merger, rose more than 6 percent.  According to reports, AT&T was so confident the deal would go through it put itself in a position to owe a hefty break-up fee to T-Mobile now that the deal has been shot down.

AT&T officials vowed to bring back a substantial number of jobs to the US if the $39 billion buyout had been approved, but the jobs were not enough incentive for officials at DOJ and the FCC to overlook their antitrust concerns over the deal.  The merger would have vaulted AT&T past Verizon as the nation's largest carrier, while Sprint would see the gap between itself and the top two grow significantly larger.

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.

Latest DT's

  • View DT's
    Here's a great bio that Full in Bloom did for the band Possessedhttp://fullinbloommusic.com/biography-possessed.html View DT's
    3 years ago by Geno
  • View DT's
    Rated: PG-13 In Theaters: January 24th Director: Stuart Beattie Starring: Aaron Eckhart, Bill Nighy, Yvonne ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 10th Director: Renny Harlin Starring: Kellan Lutz, Gaia Weiss, Scott Adkins View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: December 4th Director: Scott Cooper Starring: Christian Bale, Casey Affleck, Zoe Saldana, Sam ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: December 13th Director: Peter Jackson Starring: Ian McKellen, Martin Freeman, Richard ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 3rd Director: Gregory Plotkin Starring: Andrew Jacobs, Jorge Diaz, Gabrielle Walsh View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: TBD In Theaters: February 7th Director: George Clooney Starring: George Clooney, Matt Damon, Bill Murray, Cate ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 17th Director: Tim Story Starring: Ice Cube, Kevin Hart, John Leguizamo, Bruce ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 17th Directors: Matt Bettinelli-Olpin, Tyler Gillett Starring: Allison Miller, Zach ... View DT's
    3 years ago by dallaseste

Top Authors

Subscribe