For those following the drama with AT&T’s desired merger/acquisition of T-Mobile, get ready for a new twist. FCC Chairman Julius Genachowski recommends to the other four FCC commissioners that the agency refer the case to an administrative law judge. This is fancy speak for “wants this deal killed” — and when the head of the FCC is against your telecom merger, you’re pretty much fornicated. AT&T has the option to fight this, but not before they lose $6 billion to T-Mobile, a $4 billion “breakup fee” and $3 billion in spectrum. That’s not counting the small fortune spent working on the merger until now, plus the cost of fighting it.
You almost have to feel bad for AT&T. Almost.
[…] they won’t merge with T-Mobile USA. This isn’t too much of a shock after the FCC tutted at them last month. Don’t cry for T-Mobile though. Thanks to a clever agreement, they’re walking […]