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In a blockbuster mobile deal, AT&T announced today it had agreed to acquire T-Mobile USA from Deutsche Telecom for $39 billion.
The acquisition will bolster AT&T's dominance with the addition of more than 33 million subscribers to its 95.5 million customer user base, giving it a new total of more than 129 million subscribers. Verizon Wireless, the second largest wireless carrier, has a little more than 94 million subscribers.
"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," AT&T Chairman and CEO Randall Stephenson said in a statement announcing the deal. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people."
Under the terms of the deal, AT&T will pay $25 billion in cash and the remainder in stock, giving Deutsche Telecom an 8 percent stake in AT&T and a seat on its board of directors. The deal has been approved by both boards of directors but is still subject to regulatory approval.
In addition to the size of the combined subscriber bases, antitrust regulators are likely to be concerned that the deal will also merge the two largest GSM carriers in the U.S. The deal will also give T-Mobile users will also gain access to a 4G wireless network using LTE, or Long Term Evolution technology.
The announcement comes on the heels of rumors that Sprint was getting ready to make an offer for T-Mobile.
More details to come.
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The acquisition will bolster AT&T's dominance with the addition of more than 33 million subscribers to its 95.5 million customer user base, giving it a new total of more than 129 million subscribers. Verizon Wireless, the second largest wireless carrier, has a little more than 94 million subscribers.
"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," AT&T Chairman and CEO Randall Stephenson said in a statement announcing the deal. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people."
Under the terms of the deal, AT&T will pay $25 billion in cash and the remainder in stock, giving Deutsche Telecom an 8 percent stake in AT&T and a seat on its board of directors. The deal has been approved by both boards of directors but is still subject to regulatory approval.
In addition to the size of the combined subscriber bases, antitrust regulators are likely to be concerned that the deal will also merge the two largest GSM carriers in the U.S. The deal will also give T-Mobile users will also gain access to a 4G wireless network using LTE, or Long Term Evolution technology.
The announcement comes on the heels of rumors that Sprint was getting ready to make an offer for T-Mobile.
More details to come.
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