Okay, here is something that caught me by surprise. AT&T will acquire T-Mobile USA from telecommunications company Deutsche Telekom for an estimated $39 billion in cash and stocks, the companies said in a joint release Sunday.
The acquisition will expand AT&T’s 4G network 1.2 million square miles and will be accessible to an additional 46.5 million Americans, the statement said. AT&T also expects to gain enough cell towers to increase its network density by 30%.
AT&T thinks this transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future. The $39 billion purchase will include a $25 billion cash payment; the remainder will be paid using AT&T stock. AT&T can increase the cash portion of the price tag by up to $4.2 billion while cutting the stock portion.
Shareholders of T-Mobile will surely find this a big bonus to their stocks while AT&T I’m sure is happy of this acquisition as it bolsters the expansion of their points of presence across the nation. What do you think of this deal?