Late last month the U.S. Justice Department sued to block the proposed AT&T takeover of T-Mobile for $39 billion. While AT&T tries to work on concessions, Verizon Chief Executive Officer Lowell McAdam said AT&T’s proposed acquisition of T-Mobile “had to occur,” at event in New York.
“The AT&T merger with T-Mobile is kind of like gravity, it had to occur. If the government wants to stop the takeover, it needs to have a plan to distribute spectrum and ease the crunch some carriers are facing, he said. “We’re going to watch that very closely.”
The U.S. Justice Department feels this deal is a threat to wireless competition. AT&T said the deal was made to gain the capacity it needs to ease network congestion, and accelerate the rollout of next generation technology faster.
“If you look at the path that wireless is on, clearly we need to have more spectrum in the marketplace,” McAdam said.
So what do you guys think? I think the block by the U.S. Government is only to force AT&T to make some concessions. In the end this deal will go through.
[via bloomberg]