AT&T drops $39 billion bid to buy T-Mobile USA | Reuters
(Reuters) - AT&T has dropped its controversial $39 billion bid for Deutsche Telekom's wireless U.S. unit, bowing to regulatory opposition over the deal that would have made it the largest cellphone operator in the country.
AT&T had said it urgently needed to buy T-Mobile USA to help overcome a spectrum shortage, while Deutsche Telekom saw it as a way to exit the U.S. market to focus on its European operations. Once a cash cow, T-Mobile USA has been loosing customers.
An agreed $3 billion break up fee to be paid by AT&T, roaming agreements with AT&T and additional mobile licenses for T-Mobile USA will soften the blow but puts Deutsche Telekom back at square one.
I had heard they were having problems, but I guess they couldn't solve them.
(Reuters) - AT&T has dropped its controversial $39 billion bid for Deutsche Telekom's wireless U.S. unit, bowing to regulatory opposition over the deal that would have made it the largest cellphone operator in the country.
AT&T had said it urgently needed to buy T-Mobile USA to help overcome a spectrum shortage, while Deutsche Telekom saw it as a way to exit the U.S. market to focus on its European operations. Once a cash cow, T-Mobile USA has been loosing customers.
An agreed $3 billion break up fee to be paid by AT&T, roaming agreements with AT&T and additional mobile licenses for T-Mobile USA will soften the blow but puts Deutsche Telekom back at square one.
I had heard they were having problems, but I guess they couldn't solve them.