Just announced now, AT&T acquires T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction at $39bil. http://www.macgasm.net/2011/03/20/att-buys-tmobil…
- Quick takeaways:
- AT&T now has access to one of the largest 4G LTE networks, meaning the rumors of the new iPhone actually having 4G may be substantiated if the primary carrier can finally support it
- T-Mobile subscribers may now get access to the iPhone without having to switch over to AT&T
Comments or thoughts, anyone?
This deal didn't actually happen, GS TMT wasn't involved.
http://dealbook.nytimes.com/2011/03/20/att-to-buy-t-mobile-usa-for-39-b…DB-SM-E-FB-SM-LIN-ATB-032011-NYT-NA&WT.mc_ev=click
AT&T was advised by Greenhill & Company, JPMorgan Chase and Evercore Partners, as well as the law firms Sullivan & Cromwell, Arnold & Porter, and Crowell & Moring.
Deutsche Telekom was advised by Morgan Stanley.
edit: sarcastic, no shit plz
Haha, I got you. You should've seen my old signature.
boom, big ass deal.... DT has had their fare share of problems in the past. Guess their US operations were better off being sold.
OMG GS TMT DIDN'T ADVISE?!?!??! The world is coming to an end.
That deal size is almost an Exxon-XTO, it should be interesting to see how big the deals can get before the next recession.
cjohn, that's what I was just talking with my father about, it'll be interesting to see how it plays out.
damn, there goes my cheap t mobile bill. : (
I'm with you. This f*cking sucks. I have T-Mobile's myTouch 4G. Sick phone with unlimited talk, text and web for $80/month plus free tethering. T-Mobile was a great alternative to the absurdly priced Verizon and AT&T. And my T-Mobile web and cell phone coverage has been nothing but sublime. This is VERY disappointing news. Maybe I should lock in a 2-year contract now (I'm on month-to-month).
With AT&T and Verizon previously neck in neck with subscriber bases, this is pretty huge. I know Sprint wanted this deal too, because Sprint and T-Mobile were pretty much even (again, on subscriber base).
I wonder how long Sprint can exist without a partner in the business now?
The biggest issue between Sprint and tMobile was the incompatible network (CDMA vs. GSM). Ideally Sprint should make a deal with Verizon (CDMA), but probably unlikely given regulators won't permit only 2 major players in the whole country. But might not be as bad given there are many low cost providers currently in place (although many are major four subsidiaries). Sprint probably feels like US Airways after United-Continental merger. Post merger integration will be fun though.
http://online.wsj.com/article/SB100014240527487044339045762128100082306…
That's also true, Eddie tweeted right as I was posting this how it may have trouble passing anti-trust concerns, now that both major GSM (and #2, #4) providers in the country become one.
wow T-mobile definitely trolled Sprint
I don't understand, I thought AT&T is building their own 4G network and T-Mobile will be the one that gains access to it.
Unless you move to a different plan, you should be able to keep your legacy plan, also known as being grandfathered in. They might play some games with you like restricting phones you can pick. I have the awesome Sprint Sero plan - 500 minutes, unlimited text and web for $30 - Employee Discount. Even corporate phone can't phase me to get rid of it.
The problem is what most of us like about our "legacy" plan is that we do month-to-month. A monthly customer is likely not going to be grandfathered in. There is no "contract" or "plan" to grandfather in. Plus AT&T charges something like $30/month to tether. T-Mobile has free tethering. Free tethering isn't really part of a "plan" to be grandfathered in--it's more like what T-Mobile gives its data customers.
cricket, here i come
Perhaps it's myopic of me to think this way, but I can't help but envy the analysts who were on this deal.
Yeah. AT&T's customer service has always been sucky, their nationwide coverage is spotty compared to Verizon and T-Mobile, and they're the pricier of all the companies. I've only been with them for the iPhone, and I'm waiting to see what happens with the new iPhone this summer to see whether I stay or roll over to Verizon. Biggest factor is that I got grandfathered in with my data plan when they changed them, I'm still paying $15 a month for unlimited, less than all my friends with new contracts pay for 2GB.
Read again, a few of the comments discussed it a bit, particularly one of mine. But yes, I agree quite a bit, #2 and #4 combining (and both primary GSM providers) raises a serious anti-trust issue.
AT&T buying T-mobile (Originally Posted: 03/20/2011)
Who's dealing this deal?
I did the whole thing.
JPM/Greenhill/Evercore for AT&T, MS for T-Mobile
Why were GS/JPM/UBS/Citi/BAML not on this deal?
Who is providing financing?
way to read the thread genius
http://www.wallstreetoasis.com/forums/att-buys-t-mobile#comment-420595
AT&T/T-Mobile USA (Originally Posted: 03/21/2011)
Wanted to create a forum about the merger discussing:
a. What are the possible ramifications for the telcom industry in the US? Sprint has been on the rise the past year with an impressive corporate shake-up..How badly does this impaire their ability to gain market share? Additionally, will the new merger actually create a network to rival Verizon?
b. In terms of advisers, its interesting to see JPMorgan once again out on top. They have made major moves in the past year, and are jumping the tables again. Is this deal creating a new trend for banking with Goldman losing some of their competitive edge?
Advisers for AT&T: Greenhill & Company JPMorgan Chase Evercore Partners
Advisers for T-Mobile: Morgan Stanley Deutsche Bank Credit Suisse
Already discussed here, and other places too: http://www.wallstreetoasis.com/forums/att-buys-t-mobile
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