The acquisition deal announced on Sunday unleashed a flood of analyst's notes
With the fate of so many players at stake -- not just AT&T (T) and Deutsche Telekom (DT), but also Verizon (VZ), Sprint (S), Apple (AAPL), Research in Motion (RIMM), Hewlett Packard (HPQ), Nokia (NOK), Motorola (MOT) and the other makers of Google (GOOG) Android phones, not to mention all the companies that build cell towers -- everybody on Wall Street, it seems, had something to say. A sample of the analyst's reports:
Stifel Nicholaus' Rebecca Arbogast: You've got to give credit to AT&T for shaking things up. The latest wireless deal, between AT&T and T-Mobile (part of DT), doesn't lack for dramatic impact, but we believe the government's initial response will be measured. We don't expect the FCC chairman will declare it to be unthinkable as Reed Hundt did in immediate response to the rumored AT&T-SBC deal years ago. Rather we think it likely that DOJ and the FCC take a deep dive into the individual market analysis... We are confident AT&T would have worked through both the political calculus and the hard numbers before agreeing to a $3 billion break-up fee, and AT&T has a sterling record of getting deals approved by the government. But we do not expect they had "socialized" the merger with DOJ or the FCC in advance, and we believe there is a large measure of uncertainty necessarily inherent in the deal.
What does AT&T's $39 billion acquisition of T-Mobile USA mean for Sprint? A whole lot of trouble.
Sprint (S), the third-largest U.S. carrier, has struggled to find its niche for years. It spent billions of dollars building out a WiMAX 4G network that has failed to pay off. It's also battled customer losses (a.k.a. churn in industry lingo) and a reputation for less-than-stellar customer service. Assuming AT&T's (T) acquisition of T-Mobile MOREMichal Lev-Ram, writer - Mar 20, 2011 5:56 PM ET
AT&T announced that the new entity would be the biggest in the US with 130 million subscribers.
The national mobile carrier choices for US consumers will decrease by one if the purchase of Deutsche Telekom AG's U.S. T-Mobile unit by AT&T (T) passes regulatory hurdles. The $39 billion deal, announced ahead of a major wireless conference in Orlando tomorrow, would create the nation's largest wireless carrier and drop the big US mobile carriers to just three.
Charles MORESeth Weintraub - Mar 20, 2011 3:05 PM ET
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