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



Author:
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!