Comments
US telecom giant AT&T has said it will buy T-Mobile USA for $39 billion from Deutsche Telekom, the European telecom company.
In a statement AT&T Inc and Deutsche Telekom AG announced that “they have entered into a definitive
agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock
transaction currently valued at approximately $39 billion”.
The deal, which was approved by the boards of both companies, includes $25 billion in cash and the rest in AT&T stock. Deutsche Telekom would receive an 8 per cent stake and a seat on AT&T’s board as part of the transaction.
The deal will benefit customers, who would get access to AT&T’s 4G technology. Besides, AT&T said the deal would help boost US infrastructure and improve network quality.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said the AT&T Chairman and CEO, Mr Randall Stephenson.
“This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations,” Mr Stephenson added.
The acquisition is expected to close in 12 months, subject to regulatory approvals.
The acquisition would reduce the number of wireless carriers in the US from four to three and is likely to face intense regulatory scrutiny.
The deal would add 34 million customers to AT&T’s current 96 million and the combined entity would serve about 43 per cent of US cellphones.
The deal would also advance AT&T’s annual wireless revenues to $80 billion from $58.5 billion at present.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.