AT&T Has Outs To Escape Breakup Fee Should AT&T/T-Mobile Merger Fall Through.

  • September 5, 2011 1:50 pm

Almost bigger than the AT&T/T-Mobile merger news itself is the fact that should the merger fall through, AT&T is on the hook for up to $6 billion in cash. While T-Mobile would most likely rather be taken under AT&T’s wing, we’re pretty sure they’d gladly accept $6 billion to fill their bank accounts with. But therein lies the problem. Even if the merger does fall through, AT&T has built in protections that exempt them from any breakup fees…

The first exemption AT&T has built into the contract is a time-based one. If the T-Mobile/AT&T merger isn’t approved within a certain (undisclosed) time frame, the contract is nullified and in turn, frees AT&T of any breakup fee requirements. AT&T can also get off the hook should T-Mobile’s overall value fall below a certain (also undisclosed) value.

While the Department of Justice has already opened a lawsuit against AT&T to stop the merger, both AT&T and T-Mobile are reportedly holding talks with the DoJ to salvage the deal.

What? You didn’t actually expect AT&T to stick to their word/not slip in some slimy stipulation that exempts them from any and all financial responsibility, did you?

Source: Reuters | Via: Slashgear

visit my website

Gadget lover, smartphone collector, and beer connoisseur. I've been writing about gadgets for three years now and loving every minute of it. Outside of the digital landscape, I enjoy being active outdoors. I'm always up for a good conversation, so feel free to drop me a line!