AT&T has just issued a statement today outlining what many probably already saw coming. And that is that they have decided to call it quits and end the bid for a T-Mobile buyout. This was by far one of the biggest corporate deals this year, especially in the mobile industry but at the moment it appears to be dead in the water -- and for good. More details and the official statement are below.
Earlier this year AT&T proposed a $39 billion dollar buyout of T-Mobile USA and since the announcement it has been under a heavy amount of scrutiny. This came from all angles by Sprint, and even the US Government. I had a feeling things wouldn't be ending on a good note and today it appears that is exactly what is happening. Don't worry though because they still get a big piece of cash at the end of the day. We've covered this story so much in the recent past that I had almost stopped reporting the small updates -- although today's new is a bit more important.
Here's the official statement from AT&T earlier today:
The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.”
T-Mobile will still cash in on the breakup fee that was discussed earlier this year (around $4-6 billion), but this isn't good news for either party. AT&T has stated they've already set aside the 4 billion they'll owe T-Mobile USA but we are still slowly getting the details as this entire story is just breaking. Feel free to read up on all the details on this merger from our timeline below. We should be hearing more from both parties sometime soon.