AT&T/T-Mobile Deal Blocked

By: Associated Press Email
By: Associated Press Email

The U.S. Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the fourth largest wireless carrier in the country by the second largest (AT&T) would reduce competition and raise prices.

The deal has faced tough opposition from consumer groups and third largest carrier Sprint since it was announced in March.

AT&T could challenge the Justice Department's action in court. A failure of the deal puts T-Mobile in a difficult position. It's struggling to compete with the larger carriers, and owner Deutsche Telekom AG has said it's not willing to invest more in the venture.

AT&T has promised T-Mobile $3 billion in cash if the deal doesn't go through, plus spectrum rights and agreements that could be worth billions more.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WOWT NBC Omaha 3501 Farnam Street Omaha, NE 68131 (402) 346-6666 sixonline@wowt.com
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 128801643 - wowt.com/a?a=128801643