🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more
Codebreaker

AT&T unable sell off assets for merger

John Moe Dec 19, 2011

Honestly, I just need to set up some short cut keys on my keyboard here. One would write the story of escalating litigation between Apple and Samsung. The other would write up how AT&T is scrambling to scrap something good out of an increasingly doomed effort to acquire T-Mobile.

The Journal, I suspect, has a shortcut key whenever they need to quote PFWTM (People Familiar With The Matter):

Talks on asset sales intended to help AT&T Inc. win approval for its acquisition of T-Mobile USA have gone cold, according to people familiar with the matter, the strongest sign yet that AT&T may abandon the $39 billion deal.

While AT&T could still try to fight the Justice Department in court, alternatives to a full-blown merger are looking more likely, the people said. Those options include AT&T’s taking a stake in the smaller carrier or doing a joint venture to share network technology, they said.

The regular old acquisition exists more as a mathematical possibility now. The bigger question becomes what T-Mobile will do after the deal falls apart. Parent company Deutsche Telekom has already said it wants out. So what becomes of that company, those customers, that bandwidth, that lady in the commercial?

 

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.