Tag Archives: merger

AT&T to acquire T-Mobile USA for $39 billion …NOT

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The first half of this post’s title was a major announcement back in March. Almost exactly nine months after news broke that AT&T would eat up T-Mobile to become a giant force against competitors Verizon Wireless and Sprint, Ma Bell has decided to end its bid to acquire T-Mobile USA. In a press release, AT&T blames the Federal Communications Commission and the Department of Justice for blocking the transaction from happening. Over the past few months, the FCC and the DOJ have been making it difficult for AT&T to buy out T-Mobile. Why you ask? I’ll let competitor Sprint express their viewpoint on the matter:

“From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.”

In other words, with T-Mobile gone consumers would have a limited selection choosing a wireless carrier and this would impede competition and lead to lower expectations when it comes to innovation. AT&T sees things differently:

The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.

Since Ma Bell wasn’t able to carry through with its acquisition as planned, the company must pay Deutsche Telekom (T-Mobile USA’s German-based parent company) $4 billion before year’s end. Also, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom. For more pop after the break to read the PR.

[Via Engadget] Continue reading AT&T to acquire T-Mobile USA for $39 billion …NOT →

AT&T to acquire T-Mobile USA for $39 billion

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Well here’s some interesting Sunday news for you. This afternoon AT&T announced a definitive agreement with Deutsche Telekom (T-Mobile USA’s German-based parent company) under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction valued at $39 billion. Should this deal go through, it will bring together T-Mobile’s current subscriber base of 33 million and AT&T’s 95 million customers thus making Ma Bell the largest wireless provider in the United States (for comparison’s sake, Verizon has 94 million customers). Furthermore, it will situate AT&T as the sole GSM provider to compete against CDMA rivals Verizon Wireless and Sprint. As far as 4G connectivity is concerned, AT&T plans to take advantage of T-Mobile’s installed infrastructure to significantly expand 4G LTE deployment to 95 percent of the U.S. population–reaching an additional 46.5 million Americans beyond current plans.

Says AT&T CEO Randall Stephenson: “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future. It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people.”

Obviously the acquisition is subject to regulatory approvals, but if all goes smoothly the transaction will close in about 12 months, AT&T will have eaten up T-Mobile USA, and Deutsche Telekom will have an 8 percent stake in AT&T. Look after the break for the official PR statements from AT&T and Deutsche Telekom that cover the basics summarized here as well as additional notes about competition and financial information. Click through the gallery of images below to see how the merger will affect coverage in America.

[Via Engadget; AT&T]

Continue reading AT&T to acquire T-Mobile USA for $39 billion →

NBC CEO Jeff Zucker to leave his post when Comcast takes over

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Last December it was announced that Comcast would supercede General Electric to become NBC Universal’s controlling parent company.  Last week brought news that NBC Universal President and CEO Jeff Zucker will be leaving his post when the merger is finalized later this year.  “Now, it is clear to me that this is the right decision for me and for the company, said Zucker.  Comcast will be a great new steward, just as GE has been, and they deserve the chance to implement their own vision.”  Unfortunately Zucker will not be remembered for much success in the NBC Entertainment division.  NBC is currently in fourth place (behind CBS, FOX, and ABC) in overall network ratings and who can forget last year’s terrible decision to axe Conan, give Jay Leno is own show, and wipe out regular primetime programming in the process.  NBC needs new leadership and vision if it wants to play catchup with the other networks.  I’m glad Zucker (publically, at least) sees it this way.

[Via CNN]

HP acquires Palm; tech world goes “Gasp! Now what?”

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On Wednesday HP announced its plans to buy out Palm for $1.2 billion, or at a price of $5.70 per share of Palm common stock.  This is big news, and it’s quite shocking.  Palm’s existance takes the shape of a rollercoaster ride.  Since its inception in 1996, Palm introduced the world to some of the first personal device assistants (PDAs) with the Palm Pilot, the Handspring Treo, Treo and Centro smartphones, and the failed experiment that was Folio.  After nearly facing its demise, Jon Rubinstein (who helped invent the iPod) left Apple to help ressurect Palm.  And so he replaced Ed Colligan as CEO, created a new mobile operating system called WebOS, and pushed out two new smartphones, the Palm Pre and Palm Pixi.  Thanks to a downright scary marketing campaign (watch this commercial if you dare) and tough business decisions (making the Pre exclusive to Sprint), Palm’s stock took another nosedive and rumors of a buyout quickly surfaced.  Tech companies like HTC and Lenovo sat at the top of analyst’s lists as possible companies to gobble up Palm.  And then, all of a sudden, HP  literally came out of no where to seal the deal.  And look at that, we’ve made it to present day.

HP will officially acquire Palm during HP’s third fiscal quarter, or by July 31.  So what does this mean for the two entities?  Right now this is what Palm’s got: the Pre, the Pixi, and most important to HP, WebOS.  HP’s executive VP Todd Bradley says, “Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices.”  Essentially, HP is going to take everything WebOS and run with it across a wide range of devices.  Which means you can plan to see it running on smartphones and potentially netbooks and tablets.  All this begs the question, what will become of the HP Slate now that WebOS is on the table?  Only time will tell.

It’s been confirmed that Palm CEO Jon Rubinstein will stay onboard with the majority of senior team members at the company.  Also, the current Palm hardware roadmap has not been affected by the merger.  All signs point a happy marrige.  Says Rubinstein: “We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”  He added, “I don’t think HP would do this unless they were willing to make the kind of investment necessary to win.”  What’s interesting here, though, is that HP signed up to be an initial key partner with Microsoft for Windows Phone 7.  Also, HP already has their less-than-successful line of iPaq smartphones.  Will Palm become iPaq or stay Palm?  All of these questions will likely be answered sometime between now and July.  All in all, the acquisition is a big win for consumers (and Palm, really) as it will breath new life into the emerging WebOS platform and introduce new hardware on a whole new scale of innovation.

Look after the break for the official PR and a letter written by Rubenstein to his company.

[Via Engadget, here & here; WSJ] Continue reading HP acquires Palm; tech world goes “Gasp! Now what?” →

Amazon-Netflix merger is looking more plausible

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Let me preface this by saying that the following is all speculative since Amazon does not comment on rumors.  Here’s the story: Last summer the market hosted the idea that Amazon could potentially acquire Netflix.  This idea was quickly shot down by analysts because at the time it did not make sense for Amazon, a company who is quickly phasing out the sale of physical items like books and CDs in favor of streaming and downloadable content, to purchase Netflix, a company that relies heavily on the distribution of physical DVDs.  But that was then and this is now.  Netflix’s latest quarterly earnings shared the following infomation: the total number of Netflix subscribers grew by one million in Q4, reaching a new milestone of 12 million subscribers total; 48% of its customers streamed at least 15 minutes of Internet video, that’s up from 28% last year; and they expect at least 66% of its subscribers will watch movies over streaming video by mid-2011.  In sum, Netflix has certainly become a more attrative buy for Amazon for two reasons: (1) Netflix has a huge customer base; (2) their subscribers are watching way more video with the Instant Watch streaming service, rather than opting for DVD rentals.  Amazon has a $54 billion market value and could easily eat up $3.4 billion Netflix.  If Amazon has plans of such an aquisition they better act soon; Netflix is getting more expensive every day.  Its stock hit an all-time high this week, up 22% to $62.33.  This could certainly shake up things in the industry, making Amazon an even stronger force in the growing digital market.

[Via The Wall Street Journal; Engadget]

Comcast merges with NBC, yielding yet another super conglomerate

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General Electric, NBC Universal’s parent company, is no longer its controlling parental unit.  Comcast, the largest cable operator in the US, has officially merged with NBCU.  It owns 51% of NBCU compared to GE’s slightly lower sliver of 49%.

So how does this affect you?  Well it doesn’t, yet.  It will take at least one year for the merge to finalize.  However, though, it leaves this to ponder: Now a cable company owns a major network that reaches almost every US household.  This may seem unhealthy, right?  Look after the break for some ” merger nutrition facts” regarding this matter.  A lengthly press release follows.

What about everyone’s favorite TV show streaming site, Hulu?  How will that fare in the future?  Comcast COO Steve Burke: “NBC has been careful not to put too much cable content on the Internet. We think that’s a smart strategy… We think that going forward, you’re going to continue to have free broadcast stuff on Hulu, and cable stuff on TV Everywhere.”  There’s been word of “Hulu Premium” content that users will have to pay to watch, what of that?  “That’s certainly not in the cards.”  Oh, good.

[Via Engadget; Gizmodo, here & here]

Continue reading Comcast merges with NBC, yielding yet another super conglomerate →