AT&T & T-Mobile merger hits a rocky patch

November 25th, 2011 - 7:37 pm ICT by Aishwarya Bhatt  

Washington, Nov 25 (THAINDIAN NEWS) AT&T is looking for ways to cushion the company because of realization that its planned takeover of T-Mobile might not happened. The company and T-Mobile were in talks for a $39 billion takeover which would have created one of the biggest telecommunication companies in the world.

The Federal Communications Commission Chairman Julius Genachowski announced recently that the merger was going to be given a hearing. The trial hearing is a rare one for mergers like this.

AT&T announced on Thursday that they have withdrawn the merger request from the Federal Communications Commission. The company announced that they have set aside $4 billion to cushion against the failure of the merger although they have indicated that they will still pursue the goal.

That optimism is not shared by many analysts. The president of the consumer group Public Knowledge, Gigi B. Sohn, indicated in a statement that, “The chances that AT&T will take over T-Mobile are almost gone. While you can never count out AT&T entirely, the fact that they pulled their F.C.C. application speaks volumes about the company’s lack of confidence.”

US federal regulators have introduced stiffer laws against excessive business practices. A proposed merger between NBC and Comcast also came to halt after concerns were raised that the resulting company will have too much control on content transmission.

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