DOJ Files Antitrust suit against At&t T-Mobile Buy Out
The sky is falling around At&t this morning as the move to gobble up T-Mobile has come to a crawl. Earlier this year At&t and T-Mobile stuck up a deal. The deal was ma bell would buy out Tmo USA and all would be well. The deal was for $39 billion dollars. If the deal was to fall through or not get approved due to legal or any other reasons, At&t would have to fork over 3 billion in cash a piece of their spectrum and most likely a host of other goodies. It seems that in their attempt to move to mobile dominance At&t has just hit another road block.
$39 billion dollar buyouts are not like going to the corner store. Hell there is probably not even a receipt. When mergers and buyouts like this go down there is a bit of arbitration that occurs on the governmental side of things. Unfortunately for both parties the Bloomberg has reported that the Department of Justice has moved to block the buyout by filing an antitrust suit against At&t’s little plan. This suit was filed in federal court this morning and moves to prove this buyout would break U.S antitrust laws as well as block any current dealings of the transaction. A quote from the filing reads “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market”. And all I could think was duh!
This deal however lopsided it may be is unfortunately not done yet. See it still needs to be rejected by US regulators. At&t will be forking over a good 3 billion in cash to T-Mobile if the deal goes south so no one expects ma bell to tuck her tail and walk away from this. There is still room for At&t to work out the deal with the government to ensure it is not in violation of the antitrust laws, but it’s not looking good.
And to add salt to the wound At&t’s very own scumbag Steve (CEO Randall Stephenson) took to the streets today to let the US know that “if” this buyout is approved that they would return 5k jobs from outsourced call centers back to the US. And more recently they have gone on record saying “We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court. We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.” So the for fight is not over yet and will surely turn into a heated battle between the US Department of Justice and At&t.
Let us know what you think of these new revelations in this buyout. Are you for the transaction or against it? Is At&t really trying to stifle competition or just being business savvy? Sound off in the comments below and let us know what you think. And of course no matter who your carrier is you can check out our all your T-Mobile accessories or At&t accessory needs.antitrust, Buyout, AT&T, T-Mobile, DOJ