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AT&T withdraws its $39 billion offer for T-Mobile, forced to pay $4 billion breakup fee

20 December 2011
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In the beginning of the year, there was a huge media frenzy surrounding this merger between AT&T and T-Mobile and nobody could have anticipated this outcome. At one point it seemed like a done deal, companies issued official statements, there were ads rolling on TV regarding the merger, it seemed like a done deal. Well, the sure thing is that the deal is now off. We received official confirmation from AT&T that it will not be acquiring T-Mobile, as a result of actions by the Federal Communications Commission and the Department of Justice intended to block the merger.

AT&T withdraws its $39 billion offer for T-Mobile, forced to pay $4 billion breakup fee

Deutsche Telekom (T-Mobile's USA parent company) is due to receive $4 billion from AT&T as part of a breakup package, but the truth is that none of the companies are happy about this forced course of action. As of now, Deutsche Telekom will have to think of a new plan for its subsidiary and AT&T is obliged to solely take care of its issues with wireless spectrum shortage. Despite the breakup, both company's remain 'friends' and what better way of showing that than entering a beneficial roaming agreement.

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