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FCC and Justice Department Slam Proposed AT and T Takeover of T-Mobile

In a lovely “we told you so” moment, we can report that two key Federal agencies – both the Federal Communications Commission (FCC) and the Department of Justice (DOJ) – are opposing the planned merger of AT and T and T-Mobile. We predicted Federal opposition to the merge when AT and T first announced their plans to takeover T-Mobile, and the Feds are opposing the merging for much the same reasons that we said that they would.

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U.S.-Based T-Mobile and Sprint / Nextel May Merge

News of a possible merger between T-Mobile and Sprint / Nextel has been met with reactions ranging from apathetic to negative. Talks between Sprint and Nextel, and T Mobile, have been going on for the past few months, and are now at the point of determining the appropriate valuation for the respective companies. While “valuation” may sound more like a purchase than a merging of the two companies, the actual transaction would have only shares of the merged company, not cash, exchanging hands, with T-Mobile assuming a majority stake-holder position (in other words, essentially acquiring Sprint Nextel).