Elevate your enterprise data technology and strategy at Transform 2021.
We already knew that AT&T had promised T-Mobile a $3 billion breakup fee if their merger isn’t approved by regulatory agencies, but now it appears that AT&T may have another $3 billion worth of assets at stake in the deal, Reuters reports.
That extra $3 billion includes $2 billion worth of wireless spectrum and a roaming agreement valued at $1 billion, sources told the news agency. A $6 billion breakup fee would be worth about 15.4 percent of AT&T’s $39 billion T-Mobile deal, potentially breaking global records, Reuters notes.
With so much at stake, the news tells us that AT&T must be even more confident about the merger’s approval than we previously thought. And in the slight off-chance the deal falls through, T-Mobile will make a bit of a killing just for being courted.
Opposition to the merger emerged almost immediately after AT&T proposed the deal in March. Speaking off the record, an FCC official said that the deal will face a “steep climb” towards approval. Sprint also didn’t waste any time opposing it. And this past Wednesday, AT&T CEO Randall Stephenson defended the merger to an exceedingly skeptical Senate committee.
The deal still needs to be approved by the Federal Communications Commission and the Department of Justice.
Reuters’ estimates come from analyst and consultant figures. AT&T likely doesn’t have a full $6 billion on the line with the deal, but whatever is at stake is certainly much more than $3 billion.
We’ll be exploring the most disruptive mobile trends at our fourth annual MobileBeat 2011 conference, on July 12-13 at the Palace Hotel in San Francisco. It will focus on the rise of 4G and how it delivers the promise of true mobile computing. MobileBeat is co-located with our GamesBeat 2011 conference this year. To register, click on this link. Sponsors can message us at firstname.lastname@example.org.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more