AfterDawn: Tech news

If regulators do not approve acquisition, AT&T owes T-Mobile $6 billion

Written by Andre Yoskowitz @ 14 May 2011 2:57 User comments (6)

If regulators do not approve acquisition, AT&T owes T-Mobile $6 billion  AT&T has confirmed a record break-up fee if regulators do not approve its proposed $39 billion acquisition of T-Mobile USA.
The carrier will pay $6 billion in fees and other benefits to T-Mobile parent Deutsche Telekom, a record by a large stretch, implying AT&T has a strong belief the deal will be approved.

Says a Deutsche Telekom spokesman (via Reuters):

$3 billion would flow directly in cash, but Deutsche Telekom would also receive spectrum and a national roaming agreement. The company did not put a value on that, but according to analysts' estimates the spectrum and roaming agreement would amount to $3 billion.


The spectrum is likely worth the bulk share, or $2 billion, with the roaming agreement worth the rest.

That being said, Deutsche Telekom CEO Rene Obermann says he believes the deal will be approved sometime before June of 2012.

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6 user comments

114.5.2011 16:17

Even though I hope this merger doesn't go through, I'm pretty sure that it will. AT&T would not put up that kind of cash if they weren't almost 100% sure.

A GSM monopoly for AT&T doesn't look good for consumers.

214.5.2011 20:39

I really hope that deal doesn't go through.

315.5.2011 17:29

So AT&T made a crappy deal that would screw them??? Sounds like that alone makes them DESERVE it!

This message has been edited since its posting. Latest edit was made on 15 May 2011 @ 5:30

415.5.2011 23:11

It should happen, money talks...........


I love the T mobile commercials!!!!!!!!!

520.5.2011 19:49

T mobile offers the best options for any tourist visiting US from a GSM country - read Rest of the world.

If merger goes through GSM service will be a huge monopoly under AT&T detrimental to consumers' interests.

Maybe they will come back under a different garb.

620.5.2011 23:36

[quoteIf merger goes through GSM service will be a huge monopoly under AT&T detrimental to consumers' interests. ]


Good point, but that's what businesses are all about!

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