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Government Blocks AT&T T-Mo Merger

imageLooks like T-Mobile may get a $3b breakup fee from AT&T if this isn’t resolved. Of course, since the merger is being blocked because of a fear of lack of competitiveness, giving T-Mo $6b could certainly level the playing field…the irony.

Anyway, the Department of Justice has filed to block the merger. Of course, it’s on the grounds of anti-competitiveness as AT&T and TMo are direct competitors in so many counties and if AT&T had them all they would have a monopoly. It is noted that AT&T can move to block the DOJ by a court action and based on the amount of money on the table I think that’s a fair presumption.

Share your thoughts. I think in the end this is probably the right move as removing TMo really does give AT&T a lot less competition and presumably that would lead to a lot of people forced to pay higher prices if they want service. I see both sides of the coin but consumers probably win with this decision.