Big news today (surprisingly on a 4 day US weekend).  The AT&T and T-Mobile merger was withdrawn from the FCC today.

The two companies look to be pursuing an alternative plan…

But, AT&T has taken a $4B pre-tax charge in recognition that the deal isn’t likely to be going through and they are likely going to have to pay T-Mobile for the effort as part of the original merger agreement.  That means the deal is pretty much over, at least in the eyes of AT&T’s own accountants.

AT&T’s efforts to spin the merger as good for consumers and creating jobs for the economy pretty much flies in the face of everything we know about competition (needed in the wireless space) with mergers reducing redundancy (people) and waste.  It appears that no one was buying it, even at the prices AT&T was willing to pay.

  • AT&T, Deutsche Telekom withdraw FCC application for T-Mobile merger, look toward DoJ (engadget.com)
  • AT&T pulls FCC application for T-Mobile USA deal, expects $4 Billion charge (thenextweb.com)
  • AT&T, DT drop FCC applications; still pursue deal (marketwatch.com)
  • AT&T yanks T-Mobile FCC bid, cops $4bn pre-emptive charges (slashgear.com)
  • AT&T getting ready to pay $4 billion to T-Mobile due to fears that their merger will not be approved (intomobile.com)
  • This Merger Is Looking Less and Less Likely (dailyfinance.com)
  • AT&T, T-Mobile deal hopes crumble (theglobeandmail.com)
  • FCC chairman opposes AT&T takeover of T-Mobile (seattletimes.nwsource.com)
  • AT&T withdraws T-Mobile takeover application from FCC (theverge.com)
  • What Happens Now to the Proposed AT&T and T-Mobile Merger? (pcworld.com)