The announcement rocked the mobile industry in the United States – AT&T is interested in taking over T-Mobile. Since the announcement it was clear that this would be a big deal and financial analysts stood close by watching developments. Now, Reuters has explained why this announcement by AT&T could be crucial to the company.
According to reports, should AT&T fail to garner regulatory approval the company would owe Deutche Telekom, the holding company of T-Mobile, $3 Billion in cash, an agreed AWS spectrum as well as a roaming agreement favorable to both parties.
According to Reuters analysts, the spectrum in questions will be worth around $2 Billion and the roaming deal a further $1 Billion. This will lead to the company losing a total of around $6 Billion on the deal in the event it is not approved by authorities.
It is clear that AT&T is staking a large amount of money on this takeover, but will the company be smiling this time next year? We know that Deutsche Telekom will, no matter what the outcome of the proposed takeover.