AT&T to buy T-Mobile USA for $39 billion -
Reports are coming in from all over this morning that AT&T has bought fellow domestic cell carrier T-Mobile USA. According to the press release, AT&T will acquire the company from Germany's Deutsche Telekom AG in a deal that's valued at $39 billion in cash and stock. The transaction is expected to close within a year, pending all of the usual paperwork, and of course regulatory approval (which probably isn't a complete given, considering how large these two companies are).
The primary impact of a deal like this will be to set up AT&T with one of the largest cellular networks in the US. AT&T's announcement pointed out that the company's data traffic grew 8,000 percent over the past four years, with the expectation that it will increase by another order of magnitude between 2010 and 2015; with the addition of the T-Mobile spectrum and cell infrastructure, AT&T will be in much better shape to handle the onslaught of high-demand users and devices.
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