“Given the U.S. Federal Communications Commission (FCC) staff opposition to the proposed AT&T merger with T-Mobile USA, it’s fair to ask: Is the $39 billion deal dead? And if that’s true, what happens to T-Mobile? Or to AT&T, which could face a multi-billion dollar penalty payment to T-Mobile if it walks away from the deal?” Matt Hamblen asks for Computerworld.
“AT&T said it was disappointed with the FCC position and is ‘reviewing all options,'” Hamblen reports. “The Communications Workers of America union, which backs the merger, called the FCC’s move a “job killer at a time of 9% unemployment.”
Hamblen reports, “Given the doubling of legal hurdles the merger faces, some analysts and experts think AT&T could walk away from the merger. But that would expose AT&T to a “walk-away” fee of potentially $6 billion in cash and spectrum rights it would be required to pay to T-Mobile under terms of its merger proposal… Gartner analyst Michael Gartenberg said AT&T won’t give up easily. ‘AT&T will play to the final straw,’ he said. ‘They’ll probably take it all the way to the end. If AT&T doesn’t go ahead, it owes T-Mobile billions.'”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
Related articles:
U.S. FCC seeks review of AT&T merger with T-Mobile USA – November 22, 2011
Verizon CEO McAdam: AT&T should be allowed acquire T-Mobile USA – September 22, 2011
U.S. DOJ won’t explain decision to challenge AT&T’s purchase of T-Mobile USA – September 21, 2011
Sprint files lawsuit to block proposed AT&T and T-Mobile USA transaction – September 6, 2011
g00d >:D
Thank you, President Obama. This is one of the greatest achievements of your first term as far as I’m concerned, and a good reason why I want to keep you in the White House for four more years. A corporate Republican slave like Fat Cat Romney would’ve let this merger pass without question.
Oh, please. What’s wrong with you that you’re so gullible?
Obama is a fool. The world laughs at him.
and a Russian Anchorwoman flips him off. 😉
But … but … didn’t they say if Obama was President the US would be respected again? Yes, the Russians have his number. A Russian anchorwoman flips him the bird (on air) while our newsmen still get that tingle up their leg when Obama’s name comes up.
Looks like Russia’s version of Faux news, complete with their “Glenda Beck.” The woman apparently knows nothing, and flips him off in imitation of the idiots we have in this country who disrespect our president. Been around the world much? Talk to anyone outside your circles, people who actually think objectively and don’t have tea bagger/American conservative agendas? The joke isn’t Obama- he’s a potential savior we idiots don’t deserve. We don’t let the guy breathe, let alone move. We, the fat, stupid, Ugly Americans. Right-wing radio and the current political discourse. Creationists and religious whackos. Man, we is ugly! And stoooo-pid!……
I see objectivity isn’t your strong suit. Obama as a “savior” cements your position as someone with a progressive/left wing agenda. It also appears you’re a typically hypocritical liberal, in that anytime someone disagrees with your “savior”, it’s disrespect, while out the other side of your face, you sit and childishly call names.
(And yes, I travel around the world, and do it quite often. In Great Britain, for example, Obama is seen as the “You want chips (fries) with that Nobel prize?”)
Nicely put, as usual (your foot/your mouth)
The Russian was not flipping off Barak Obama, which would be bad enough, but the President of the United States, which is even worse, because she is flipping ALL of us off.
I have never cared for this BS about putting down the President just because he isn’t of your party. I also don’t give two shits about what the rest of the world thinks about our President, left or right.
Do you honestly think they care what we think of their leaders?
Do you think it keeps them from voting what their heart feels is right because Americans might not agree?
I vote for a leader of out nation to do what is right for us.
That doesn’t mean he has to offend other nations, but if he does while pursuing our interest, so be it.
Many foreigners offend me on a daily basis, but you don’t hear them worrying about it.
And now for something completely different
Happy Thanksgiving to all
(even auramac and kingmel….)
and to avoid any confusion, my last post was directed at auramac, DRMSSDB, SmackWaterJack, kingmel, and the rest of the usual suspects…
Your argument is that AN anchorwoman in Russia flipping off the President means that the entire world dislikes Obama? Wow.
There was actual international animosity to Bush. Multiple newspapers making fun of us for re-electing him. Until we see that same thing with regard to Obama, you are simply not correct. In fact, you are willfully stupid.
…and let’s not forget that little shoe throwing incident. http://www.youtube.com/watch?v=WdvRWReY-Yo
and it wasn’t just one shoe… it was both! yeah… nothing says “We really dislike you” more than a double shoe throwing.
Well it’s starting to smell funny.
‘They’ll probably take it all the way to the end. If AT&T doesn’t go ahead, it owes T-Mobile billions.’
this is total BS…
a Company starts the paperwork to buy another, the government steps in and says no.. so Company 1 pays billions to company 2 if they don’t fight the government.
AT&T will have to spend billions defending the deal, that AT&T AND T-Mobile both want, or spend billions to T-Mobile…
Total BS.
“there’s still a possibility AT&T will “drag out the litigation, which would weaken T-Mobile — that would be a victory for AT&T.”
And this is exactly what AT&T will do, T-Mobile will be gone either way…
“Gold said if the merger fails, T-Mobile might maneuver to break itself up and sell some assets to AT&T and other carriers, even Sprint.”
and this is why Sprint wants it to fail.. THEY could profit from it.
It’s no different from what Verizon did to get as big as they are now.
“this is total BS…”
Agreed. If a contractual obligation by AT&T were broken by way of THEIR CHOICE to not complete the merger, then AT&T would have to pay up. But this has nothing to do with AT&T’s purchase contract with T-Mobile.
“this is why Sprint wants it to fail.. THEY could profit from it.”
Yeah, well, there’s a different issue. I for one require quality companies with which to do business. Sprint remain infamous for their Marketing Moron (aka disrespectful) attitude toward their customers. I’d personally enjoy dancing on Sprint’s grave, despite my championing competition in the marketplace.
Who were the idiots at AT&T who agreed to a $6B breakup fee?!? Heck, if I were T-Mo, I’d have tried to scuttle the deal, because $6B and spectrum is a huge victory! Now they’re worth even more to some other buyer!
Note to the politically assertive in this forum. It is the U.S. Federal Communications Commission (FCC), not Obama, performing this review. It gets really old when absolutely everything is purported to be directly associated with Obama.
I understand that many of you are so anti-Obama that you would even object to a tax cut if the idea were suggested by Obama. But your contrarianism loses its zing when you spread it thin across absolutely everything. Please stop to think once in a while.
Very well put. Especially the part about the contrarianism.
I also agree. Most of the guys at the FCC have been around since before bush I believe.
This entire comment posted using Siri 😄
Stop it. Some people don’t have the time to be bothered with facts. Leave them alone.
You’re right… Obama doesn’t do anything.
Besides, as we’re all still hearing… Everything is Bush’s fault.
Note to the politically dissuasive. The FCC is headed by a political appointee of Barack Obama’s after helping him in his campaign by being in charge of the technology policy.
He is now in charge of instituting the President’s policy.
That’s a reality. Deal with it.
@ kingme
Well said.
I second your comment.
“Is the AT&T merger with T-Mobile USA dead??
Yes. And it’s no BFD. Theoretically the consumer wins by having more choice as well as the benefits of more competition.
“BIG MEDIA” has been a horrible trend, of benefit to no one but dopey corporations with control issues and an unwillingness to compete in the marketplace. (And yes, phones = media). It’s great to see it being challenged.
I think everyone is missing the real potential loss here.
The girl in pink from the T-mobile commercials.
(yeow… Can’t get enough of the T-Mo ads!!)
Yes, I wood miss her.
She would be a great asset, er, face for ATT,
and give them a gam up in thighs, uh, sales,
resulting in a rise in, um, profits or something
whatever
I got to go grab a smoke….
Having been guilty of participating before, but now re-evaluating that behavior, the only thing worse than political bickering in sound-byte quality factoids, innuendos and name-calling lobbed back and forth on a political or general news forum is to see the same thing in a tech forum. Generating, in both places, more heat and re-re-re-repeat than light.
@ bigpics: spot on.