A doomed deal? AT&T withdraws T-Mobile bid at the FCC

A doomed deal? AT&T withdraws T-Mobile bid at the FCCAT&T has withdrawn a key piece of its bid for T-Mobile. Though the move is said to be temporary, the massive merger is in serious trouble.

The Federal Communications Commission (FCC) has suggested for weeks that it had big problems with AT&T's $39 billion buyout of T-Mobile USA. On November 22, the FCC made its displeasure even clearer, forwarding the entire merger to an administrative law judge for review and demanding that AT&T prove the deal would be in the public interest.

Instead of doing this, AT&T has decided to take its ball and go home. Yesterday, the company withdrew its FCC application.

AT&T and T-Mobile owner Deutsche Telekom insisted in a statement (PDF) that the withdrawal would be temporary and that, "as soon as practical, AT&T Inc. and Deutsche Telekom AG intend to seek the necessary FCC approval."

What will they be doing in the meantime? Fighting off an antitrust lawsuit brought by the Department of Justice, the other government agency reviewing the deal. The companies will "focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia, Case No. 1:11-cv-01560 (ESH) or alternate means."

AT&T will also take a pretax charge of $4 billion dollars in the fourth quarter of this year—a move which accounts for the "breakup fee" it owes Deutsche Telekom if the deal falls apart.

Public Knowledge's Gigi Sohn, who has opposed the merger from the start, said today in a statement that "the chances that AT&T will take over T-Mobile are almost gone.... AT&T's move will, for the moment, prevent the FCC from making public its many, well-documented findings that the deal is not in the public interest and will prevent the judge overseeing the antitrust lawsuit from seeing the FCC's conclusions. Those findings would be the subject of the large and complex administrative hearing and process that AT&T would still need to survive in order to complete the $39 billion transaction."

Another opponent, the Media Access Project, called the move a "turkey" that is "too big to be hidden by releasing it on Thanksgiving. It is an act of desperation which will only hurt their shareholders by delaying the inevitable. It is time for vainglorious managers at AT&T to accept that there is no way that this deal can obtain approval of the FCC and the courts."

Source: Ars Technica

Tags: AT&t, USA

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Galaxy Note10 really is built around a 6.7-inch display
You may still be able to download your content
Facebook, Messenger and Instagram are all going away
Minimize apps to a floating, always-on-top bubble
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
The 2001 operating system has reached its lowest share level
The entire TSMC 5nm design infrastructure is available now from TSMC
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (16)