You've probably seen the ads by now with T-Mobile mocking AT&T's network.  Well, T-Mobile must have decided that it wasn't that bad after all, as AT&T and Deutsche Telekom AG announced today that the two companies entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction.  The valued price tag?  Just a mere $39 billion.  The agreement was approved by the Boards of Directors of both companies.

According to the press release, the deal will provide an optimal combination of network assets to add capacity sooner than any alternative, as well as providing an opportunity to improve network quality in the near term for both companies' customers.  It will also provide a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which can hinder both companies' chances to meet the ever increasing demand of mobile broadband.

"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," notes Randall Stephenson, AT&T Chairman and CEO.  "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people.  Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more.  During the past few years, America's high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth."

He continues, "This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations.  We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers' current demands, build for the future and help achieve the President's goals for a high-speed, wirelessly connected America."

As part of the deal, Deutsche Telekom will receive an equity stake in AT&T that, based on the agreement terms, would give Deutsche Telekom an ownership interest in AT&T of about 8 percent.  Also, a Deutsche Telekom representative will join the AT&T Board of Directors.

According to the agreement conditions, the acquisition will be subject to the usual regulatory approvals, and is expected to close in about 12 months.

AT&T will be holding a live video and audio webcast presentation tomorrow at 8 a.m. EST regarding its plans to acquire T-Mobile USA. 

For more about the deal, check out www.MobilizeEverything.com which includes details on background information as well as factsheets.

What say you, readers?  Do you like the deal?  Don't like it?  Feel free to leave your take below!

via Business Insider

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