Moffett: Time For AT&T To Concede Defeat in T-Mobile Merger Proposal

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In a memo to clients, top media analyst Craig Moffett of Bernstein Research, advised that it was time for AT&T to wave the white flag: "We believe that it is now time for AT&T to concede defeat and withdraw the merger," he wrote.

Moffett said that given that the Department of Justice has sued to block the deal, and there would not be a second trial at the Federal Communications Commission that AT&T would have to win as well, he says the likelihood of success on both fronts is de minimis. He noted that AT&T could drag the process out given that it will have to pay a break-up fee if it does scrap the deal, but he also pointed out that the telecommunications giant will have to continue to do business with the FCC and DOJ. In fact, at the same time FCC Chairman Julius Genachowski circulated the order to block the deal, he also circulated one approving AT&T's purchase of Qualcomm spectrum. Moffitt said that the question for the company going forward was whether it will "pursue another deal to acquire spectrum; whether they instead will be forced to increase capital spending to sustain network quality as usage scales; or whether they will simply more aggressively ration consumption." (Nov 23)


Moffett: Time For AT&T To Concede Defeat in T-Mobile Merger Proposal