AT&T Inc. announced today plans to buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal for $39 billion. This purchase would make AT&T the largest cell phone company in the U.S. reducing the nationwide carriers from 4 to 3. The deal is sure to face close regulatory scrutiny and eliminates a potential partner for the struggling Sprint Nextel Corp which reportedly has been in talks to merge with T-Mobile USA.
AT&T will purchase T-Mobile USA for about $25 billion in cash and the remainder in company stock in a deal that gives Deutsche Telekom, Germany’s largest phone company, about an 8% equity stake in AT&T. The deal will also give Deutsche Telekom one seat on AT&T’s board. Both company board of directors have approved the deal.
