The AT&T and T-Mobile merger deal is officially dead. After months of seeking FCC approval and facing several road blocks, including a lawsuit from the DOJ, AT&T has finally succumbed to defeat and issued a statement today announcing that it is dropping its proposed bid to takeover T-Mobile for $39 billion.
According to the Wall Street Journal, the antitrust lawsuit against AT&T's T-Mobile merger may be either postponed or withdrawn by the Department of Justice sometime next week. DOJ lawyer Joseph Wayland explained that the expedited court proceedings were no longer needed since AT&T had withdrawn its merger application from the FCC. But this isn't necessarily good news for AT&T.
Verizon CEO Lowell McAdam has spoken out in favor of the AT&T/T-Mobile merger, describing the deal as "kind of like gravity" and arguing that, if it blocks it, the US government will need to be more active in its spectrum plans. Speaking at an investor conference this week, McAdam claimed "that match had to occur" MarketWatch reports, and warned that the involved parties "need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation."
AT&T's bid to purchase T-Mobile for $39 billion may have to wait until at least past February of next year. A trial date for February 13 was set today by US District Judge Ellen Segal Huvelle in the antitrust lawsuit filed by the US Department of Justice joined by seven states against the AT&T and T-Mobile merger.
As you may or may not know, for quite a few weeks now T-Mobile and AT&T have been in dealings leading to what they hope will be a merger between them - what we're seeing this week is that the Department of Justice here in the USA has filed a lawsuit that would block the merger in U.S. District Court. You can read all about the case from the AT&T side in a post from yesterday, then you can head below and see how T-Mobile feels about the situation via an internal e-mail sent by the CEO of the T-Mobile USA group to employees. What you'll find is similar sentiments to the AT&T crew, surprise at the lawsuit, vows to fight back, and a call to build on the positive momentum the T-Mo has reportedly built in the past few months.
AT&T may be working hard insisting that it's in users' best interest for the T-Mobile acquisition to go ahead, but it's a long way from convincing regulators. The Department of Justice has filed an antitrust complaint in an attempt to block the merger, Bloomberg reports, arguing that it would "substantially lessen competition" in the US wireless market. Meanwhile, the FCC has waded in as well, with chairman Julius Genachowski revealing that the agency also has "serious concerns" about the deal.
It's time for Virgin Mobile's "Sparah" to take on T-Mobile and AT&T in an advertisement that not only paints the stark white backgrounds of T-Mobile, AT&T, Apple, and etcetera commercials black, they take T-Mobile and AT&T's characters down with them. Sparah is the name of Virgin Mobile USA's summer 2011 marketing campaign, one in which two supposed complete strangers have been lifted from obscurity to be manufactured into a celebrity couple to promote Virgin Mobile - Spencer Falls and Sarah Carroll. Apparently they're very popular and everyone in the celebrity world hates them or loves them or some combination of the two - now they're coming down on T-Mobile and AT&T with some sweet video action.
The AT&T acquisition of T-Mobile is facing more opposition just days following Senate antitrust subcommittee chairman Herb Kohl's letter warning against the "substantial harm" that could come of the merger. Today, the New-York based law firm, Bursor & Fisher, have filed arbitration cases against the acquisition on behalf of 11 AT&T customers.
The AT&T and T-Mobile acquisition proceeding may be hitting a snag for the two major U.S. carriers. Senator Herb Kohl has just issued a stern letter warning against the acquisition, saying that it could cause "substantial harm" to competition and consumers. Senator Kohl also happens to be the chairman of the Senate's antitrust committee.
When AT&T announced its plans to purchase T-Mobile for $39 billion, the most vocal opposition was third-place carrier Sprint. Very early on, Sprint warned U.S. regulators that the acquisition would "alter dramatically the structure of the communications industry" and said that AT&T and T-Mobile combined would be three times its own size. Today, Sprint officially filed a petition with the FCC to block the merger.