On “Nearly Unprecedented” M&A Run, AT&T Flirts with T-Mobile Acquisition

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AT&T recently acquired television provider DirecTV for $49 billion, offered $85 billion for Time Warner and is floating the idea of buying out competitor T-Mobile—which would come at an estimated $70 billion price tag, reports 24/7 Wall Street.

AT&T attempted to buy T-Mobile in 2011, but the potentially $39 billion deal fell through. Buyout talks have been reignited due to Softbank, Sprint’s majority shareholders’ interest in a potential transaction with Deutsche Telekom, which is controlled by T-Mobile.
Although ranked third out of the four major carriers, T-Mobile has added subscribers at an impressive rate, surpassing Sprint as the third largest major carrier. T-Mobile has 68 million subscribers compared to Sprint’s 58 million.

AT&T remains the second largest carrier behind Verizon, with 132 million subscribers, meaning an acquisition of T-Mobile could put them atop the subscriber count.

February 21, 2017

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