AT&T to acquire to T-Mobile

T-Mobile USA is a German wireless provider owned by Deutsche Telekom. They recently announced their plans of selling T-Mobile USA to AT&T, which will set AT&T to become USA's largest carrier. On March 20th 2011 the companies shared the details of this acquisition.

AT&T will pay Deutsche Telekom US $ 39 billion in cash and stocks to acquire T-Mobile USA. The process will take place during the period of 12 months.

Out of the $39 billion it looks like $25 billion will be in cash, while the remaining $14 billion will be in stocks. As part of the deal Deutsche Telekom will also have 8% iof equity stake in AT&T.

Both companies have a combined user base of 130 million customers, which will mean that with the merger, AT&T will take the top spot from Verizon.

The one big issue we personally have with this merge is that AT&T will become a monopoly as the only carrier to offer GSM connectivity in the U.S. T-Mobile USA will however continue to operate as an independent company until the acquisition is completed.

T-Mobile has provided a FAQ page answering some of the major questions or concerns customers may have. We have to remember that T-Mobile was the first company to bring an Android device to the U.S.