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  • AT&T Takeover of T-Mobile: Justice Department says, “Way Too Big”

    The Department of Justice is seeking to block AT&T’s 39 billion takeover of T-Mobile.

    The Justice Department on Wednesday sued to block AT&T Inc.’s proposed $39 billion takeover of T-Mobile USA, a surprisingly swift move that dealt a blow to AT&T’s ambition to build the largest U.S. cellphone carrier. The government said the combination of the second- and fourth-largest cellphone companies in the U.S. would harm competition and likely raise prices for consumers.

    The department of justice is seeking to block AT&T’s takeover of T-Mobile. Deal Journal’s Shira Ovide joins Markets Hub with details on how the suit could impact the telecommunications sector.

    The antitrust challenge came just five months after the deal was announced, catching AT&T off guard. The Dallas-based communications giant vowed to fight to preserve its prize deal, setting up one of the most significant antitrust court battles in recent years. The lawsuit is the Obama administration’s boldest antitrust challenge to date and the latest evidence of its intention to reinvigorate enforcement after what it says was a lull during the previous administration.

    In May, the Justice Department threatened to file a suit blocking Nasdaq OMX Group‘s proposed $11.3 billion bid for NYSE Euronext, which would have joined the two biggest stock exchanges in the U.S. Nasdaq subsequently dropped its bid.

    The T-Mobile acquisition “would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said James Cole, deputy attorney general.

    Filed Under: Gamechangers

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