A surprise announcement by AT&T rocked the telecommunications industry. On Sunday the bought T-Mobil from Deutsche Telekom for $39 billion .This will catapult AT&T to the largest cellular phone company. From Wall Street Journal:
The former Baby Bell, which built itself up through a decade of acquisitions into the country’s largest telecommunications company, was planning to buy T-Mobile USA, a deal that would test its skilled regulatory team in Washington.
The combination would bring together the second and fourth largest U.S. wireless operators by revenue, creating a giant in an already concentrated market. People familiar with the matter said AT&T executives, fearing a leak could build regulatory opposition even before the two sides agreed on a deal, kept the number of banks involved strictly limited for weeks. It leaned on J.P. Morgan Chase & Co. alone to provide a $20 billion loan.
In the end, the secret held, ushering in a $39 billion acquisition that is as much a wager on the political environment in Washington as it is a bet on the future of the wireless market.