May 13 AT 10:38 AM Alberto Vildosola 42 Comments

AT&T’s failure to acquire T-Mobile would cost the company $6 billion

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If you think 20 bucks is a lot of money to lose during one of those poker nights with your buddies, how would you feel about $6 billion? That’s how much AT&T could lose if it fails to acquire T-Mobile.

This is because AT&T agreed to pay T-Mobile $3 billion in cash if the deal fell through, plus $2 billion worth of wireless spectrum and a roaming agreement priced at around $1 billion. To put things in perspective, AT&T is buying T-Mobile for $39 billion, meaning the company is risking 15.4% of that just to be able to buy Magenta. That would be like somebody risking $3000 just to have the opportunity to buy a $20,000 car. It’s crazy. Of course, we don’t have $6 billion under our couch, so what do we know.

If AT&T has decided to risk this much capital, they must feel extremely confident that they’ll be able to buy T-Mobile — which means they’ll most likely be able to. But this thing is not over until Washington says so, and you never know what’s going to happen when the government gets involved.

Those of you that are against this acquisition, do you want AT&T to fail even more now knowing how much money the company is risking? Or do you admire their confidence?

Source: Reuters

Alberto is a college student living somewhere between Miami, Sarasota and the World Wide Web. Although a former iPhone owner, Alberto is now a proud Android enthusiast. You can follow Alberto on Twitter and Google+ for his thoughts unworthy of an article.

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