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TNDan21 · 01-30-2005, 6:22 PM

NEW YORK - Local phone giant SBC Communications Inc. has agreed to acquire AT&T Corp. for roughly $16 billion in cash and stock, according to a published report.

Citing sources close to both companies, The Wall Street Journal reported on its Web site that the deal had been struck and that boards of both companies were planning votes Sunday afternoon. SBC spokesman Walt Sharp told The Associated Press he had “no information on anything of that nature.”

“We do not comment on speculation,” Sharp said.

AT&T spokesman Jim Byrnes told the AP the company does not comment on “what we consider to be rumors or speculation about mergers, acquisitions, or other business combinations.”

Any such acquisition would be subject to regulatory and shareholder approvals.

San Antonio-based SBC is the nation’s second-biggest regional phone company, with about 50 million local-telephone customers, mostly in the Midwest and South.

AT&T is a 120-year-old telephone icon once known as Ma Bell that handled the nation’s telephone calls before it was broken apart 21 years ago. The Bedminster, N.J.-based company has nearly 30 million long-distance customers.

Report: SBC to acquire AT&T for $16 billion

azcellphonejunkie · 01-30-2005, 6:30 PM

Dateline on this is yesterday. Looks like it is moving forward! Very cool!

TNDan21 · 01-30-2005, 6:32 PM

Actually this was just announced today, today is the 30th. If you do a news search of this on the internet all this information just came out about two hours ago or so.

azcellphonejunkie · 01-30-2005, 6:36 PM

Quote:

Originally Posted by TNDan21

Actually this was just announced today, today is the 30th. If you do a news search of this on the internet all this information just came out about two hours ago or so.

Sorry had my days mixed up, thanks for correcting me. I see the time stamp on the article is from 3:13 eastern...

AnthroMatt · 01-30-2005, 6:47 PM

SBC 2005 = AT&T 1980

azcellphonejunkie · 01-30-2005, 7:06 PM

You got that right! 1st AT&T wireless, now the landline division! They are cleaning up!

Gonz · 01-31-2005, 12:06 AM

So much for competition around here, well, other than VOIP, I only have one choice for landline service, Centurytel...Everybody hates them...We want VZ or SBC to buy them out! $55/mo for regular phone serivce...

There is this great small independent phone company down in Elkhorn, WI...Where I work in the summer. SLD, State Long Distance, one of the only original independent phone companies in WI today...

www.statelongdistance.com

$15 a month for standard phone service, unbelievable!

Kenny · 01-31-2005, 12:07 AM

Reports: SBC to buy AT&T for $16B
By Jeffry Bartash, MarketWatch

Last Update: 10:55 PM ET Jan. 30, 2005

WASHINGTON (MarketWatch) -- SBC Communications has reached a tentative agreement to acquire its former parent ATT Corp. in a $16 billion deal that could spell the end of one of the most storied names in American business history, according to published reports.

A story in the online edition of the Wall Street Journal, citing people close to the companies' boards, said SBC's (SBC: news, chart, profile) board approved the deal Sunday night while AT&T's (T: news, chart, profile) board was still meeting to consider the agreement.

Under the terms of the deal, according to the Journal, AT&T shareholders would receive SBC shares valued at about $15 billion, as well as another $1 billion in the form of a special dividend. SBC Chairman and Chief Executive Edward Whitacre Jr. would remain in his current positions, while AT&T Chief Executive David Dorman would become president, the Journal reported. AT&T would get three seats on the new company's board, including one for Dorman.

The telecom giants have been in talks for days about a transaction that could result in the creation of the largest telecommunications company in the United States. The two sides have been in merger talks several times before, with the last discussions ending in November.

The deal would have San Antonio-based SBC, one of the Baby Bells, buying AT&T, the original Mal Bell that was splintered into seven regional telephone companies and a large long-distance company by a landmark 1984 antitrust ruling.

Such a deal would face heavy regulatory scrutiny.

If the once "unthinkable" deal is approved by regulators, SBC would become the nation's largest phone company and the first to extend its tentacles into every key segment of the communications market.

The biggest object of SBC's affection is AT&T's corporate-services business. Overnight, SBC would obtain 3 million business customers and leap into the No. 1 position in that market.

Still, the merger could be hard for SBC investors to swallow. Under severe competitive pressure, AT&T has seen its revenue tumble from a peak of $50 billion in 1999 to just $30 billion in 2004, with sales expected to fall another $5 billion over the next 12 months.

For AT&T's beleaguered employees and investors, however, SBC would act as a "white knight," rescuing the company from a dreary future of ever-dwindling sales and profits.

That's why shares of AT&T soared Thursday when news of merger talks emerged. SBC stock, on the other hand, fell sharply

On Friday, AT&T added 11 cents to close at $19.71. SBC fell again, though only by a nickel, closing at $23.62.

Antitrust experts now believe the merger of AT&T with one of its Baby Bell offspring can win regulatory approval given radical regulatory and technological shifts in the communications industry.

Nonetheless, the sale of AT&T is likely to face sharp criticism from consumer groups and some lawmakers who are concerned about the growing consolidation in the domestic phone industry.

In recent months, for example, Cingular Wireless has acquired AT&T Wireless and Sprint has announced plans to buy Nextel Communications. In light of the merger frenzy, regulators can be expected to take a long look at a proposed SBC-AT&T combination. See full story.

If history follows form, a sale of AT&T could also trigger another buying spree as SBC rivals Verizon Communications and BellSouth Corp. review whether they need to acquire a long-distance network.

Potential targets would include MCI Inc. (MCIP: news, chart, profile) and Qwest Communications (Q: news, chart, profile) or smaller operators such as Level 3 Communications (LVLT: news, chart, profile) .

Still, long-distance competition remains intense, and it could be a difficult market for companies such as SBC to master. At the same time, technological changes are radically reshaping the phone industry, while new competitors such as cable TV operators are entering the market.

The move could pose other difficulties, too. By acquiring AT&T, SBC would put itself in direct competition with BellSouth, its partner in the Cingular Wireless joint venture.

Moreover, Cingular recently spent $41 billion to buy AT&T Wireless, funded in large part by SBC. The company will now have to take significantly more debt to pay for the AT&T purchase.

Yet top SBC executives believe they need to serve every part of the communications market -- local phone, long-distance, Internet, wireless and even television service -- to be successful. The looming threat from cable has only exacerbated the company's concerns.

Over the past decade, SBC has been one of the industry's most aggressive acquirers. When the company was formed after the government's 1984 breakup of the AT&T monopoly, SBC was the smallest of the seven local "Baby Bells.

Now the company is the second largest of the four remaining Bells, serving 36 million households in 13 states, including Texas and California. SBC is also the 60 percent owner of Cingular Wireless, the nation's largest wireless phone provider.

SBC now has a market value of nearly $80 billion, dwarfing its former parent. A shrunken AT&T is valued at just over $15.5 billion, far below its all-time high.

Yet AT&T did generate lots of cash in 2004 -- $3.7 billion in so-called free cash flow -- mostly by jettisoning workers and taking other steps to slash costs.

Some analysts say SBC could pay off the purchase price within a few years by further lowering costs and pocketing the large-if-dwindling amount of cash AT&T produces. Among other things, SBC would be expected to eliminate thousands of additional jobs.

DanPFW · 01-31-2005, 3:16 PM

Anybody have any thoughts on how this will affect AT&T's MVNO agreement with Sprint PCS?

I can't imagine SBC would want to be selling wireless service for 2 different networks, would they? It would appear that this merger COULD affect the number of virtual wireless providers!

Dan

bobolito · 01-31-2005, 5:20 PM

If this goes through, so much for Verizon's monopoly in my area. If SBC can take over AT&T's VoIP home service and DSL offerings and put them into a bundle with Cingular, that would be great competition for Verizon.

jones · 01-31-2005, 5:42 PM

Quote:

Originally Posted by DanPFW

Anybody have any thoughts on how this will affect AT&T's MVNO agreement with Sprint PCS?

I can't imagine SBC would want to be selling wireless service for 2 different networks, would they? It would appear that this merger COULD affect the number of virtual wireless providers!

Dan

Yes, ATT IS NOW conSidering CINGULAR.

larry · 01-31-2005, 7:37 PM

Quote:

Originally Posted by DanPFW

Anybody have any thoughts on how this will affect AT&T's MVNO agreement with Sprint PCS?

I can't imagine SBC would want to be selling wireless service for 2 different networks, would they? It would appear that this merger COULD affect the number of virtual wireless providers!

Dan

I was wondering the same thing. Except why would they sign this deal with Sprint to begin with if they are going to be acquired? And why would they still be talking about this just a couple of weeks ago (link below) with plans to offer AT&T MVNO service? Makes no sense.

http://www.mobiledia.com/news/23308.html

Andy · 01-31-2005, 9:08 PM

Who would have thought that the wireless/landline business would change so rapidly just before news leaked about AT&T Wireless wanting to sell...sorry for the off topicness, but I just had to write that.

ehcruzan · 01-31-2005, 10:37 PM

Quote:

Originally Posted by larry

I was wondering the same thing. Except why would they sign this deal with Sprint to begin with if they are going to be acquired? And why would they still be talking about this just a couple of weeks ago (link below) with plans to offer AT&T MVNO service? Makes no sense.

http://www.mobiledia.com/news/23308.html

There was no guarantee this deal would go through. AT&T has held talks with SBC in the past and they fell through. They've also held talks with BellSouth, as recent as the 3Q 2004, but the deal fell apart on price. AT&T had to look forward to a bleak future and saw wireless as an opportunity for growth, despite their move to spin it off a couple years ago. Telecom is a fast-paced industry where those who move late are left behind or erased from the scene...just ask AT&T.

ehcruzan · 01-31-2005, 10:40 PM

Quote:

Originally Posted by bobolito

If this goes through, so much for Verizon's monopoly in my area. If SBC can take over AT&T's VoIP home service and DSL offerings and put them into a bundle with Cingular, that would be great competition for Verizon.

I agree with you Bobolito. CallVantage is a great product and Verizon has to be considering a bid for MCI, FON or even Level3. My hat goes off to SBC as they have been quite agressive. Verizon is beginning to look less like a dominant carrier and more like a carrier desperate to make a deal.

Fire14 · 02-01-2005, 12:36 AM

AT&T to review Sprint wireless resale deal

NEW YORK, Jan 31 (Reuters) - AT&T Corp. (T.N: Quote, Profile, Research) said on Monday it would review its deal to resell mobile telephone services from Sprint Corp. (FON.N: Quote, Profile, Research) in light of its plan to be bought for $16 billion by SBC Communications Inc._(SBC.N: Quote, Profile, Research) .

Analysts widely expect the review to result in AT&T exiting its five year agreement to rent space on Sprint's network if the SBC deal closes as expected in the first half of 2006.

"I would expect that deal to unravel" said Davenport & Co. analyst Drake Johnstone who believes AT&T will depend solely on mobile services from Cingular Wireless the largest U.S. mobile service and a venture of SBC and BellSouth Corp._(BLS.N: Quote, Profile, Research) .

AT&T Chairman David Dorman, said AT&T still plans to offer a wireless service this year but indicated that it would sell Cingular services to its customers after the SBC deal.

"To the extent that we can drive greater penetration for wireless in our customer base for Cingular, I think that's great news for Cingular and both its partners and certainly for our customers," Dorman said in a telephone news conference.

Sprint, which plans to buy Nextel Communications Inc. (NXTL.O: Quote, Profile, Research) this year, declined comment on any financial implications if AT&T leaves their agreement early and AT&T did not discuss any such costs in its conference call.

It had said it expected the deal with AT&T to help it gain additional revenue from AT&T's business customers.

"Sprint just lost a big customer," said telecommunications industry analyst Jeff Kagan.

But Johnstone downplayed the significance of AT&T's use of Cingular for Sprint investors. He noted that will pick up new business clients from Nextel, which mainly provides services to small and medium sized businesses and government agencies.

Sprint has been the most willing provider of wholesale services in the United States, setting up deals with Virgin Mobile USA, Walt Disney Co.'s (DIS.N: Quote, Profile, Research) sports network ESPN and Qwest Communications International Inc._(Q.N: Quote, Profile, Research) .

AT&T had said it would launch its wireless resale service using Sprint's network sometime in the next few months. Cingular, which bought AT&T Wireless for $41 billion in October, had agreed to give back the AT&T brand for wireless.

Regional operator SBC will create the biggest U.S. telecommunications operator together with AT&T, which pulled back from the residential telephone services in July to focus on business clients.

Sprint shares were up 55 cents or more than 2 percent at $23.71 in afternoon trade on the New York Stock Exchange where AT&T stock was down 66 cents or more than 3 percent at $19.05. (Additional reporting from Justin Hyde in Washington)

DanPFW · 02-01-2005, 12:41 PM

What are the chances this was all thought up long ago?

First, AT&T splits off the wireless, easier to sell. Cingular buys the wireless division. Now the wire line company is easier to buy because it's a smaller unit.

One of Cingular's parents then buys the wire line business. AT&T continues to sell wireless service on the network they used to own, if this sale goes through? But, what is the point of SBC selling wireless service to compete with Cingular. Why not just give customers a break if they have SBC landline + Cingular wireless?

Someone’s gotta think about conspiracies!

Fire14 · 02-01-2005, 2:08 PM

Quote:

Originally Posted by DanPFW

What are the chances this was all thought up long ago?

First, AT&T splits off the wireless, easier to sell. Cingular buys the wireless division. Now the wire line company is easier to buy because it's a smaller unit.

One of Cingular's parents then buys the wire line business. AT&T continues to sell wireless service on the network they used to own, if this sale goes through? But, what is the point of SBC selling wireless service to compete with Cingular. Why not just give customers a break if they have SBC landline + Cingular wireless?

Someone’s gotta think about conspiracies!

AT&T Chairman David Dorman, said AT&T still plans to offer a wireless service this year but indicated that it would sell Cingular services to its customers after the SBC deal.

"To the extent that we can drive greater penetration for wireless in our customer base for Cingular, I think that's great news for Cingular and both its partners and certainly for our customers," Dorman said in a telephone news conference.
According to this they would be selling Cingular Wireless service.

larry · 02-01-2005, 2:53 PM

Quote:

Originally Posted by Fire14

AT&T to review Sprint wireless resale deal

NEW YORK, Jan 31 (Reuters) - AT&T Corp. (T.N: Quote, Profile, Research) said on Monday it would review its deal to resell mobile telephone services from Sprint Corp. (FON.N: Quote, Profile, Research) in light of its plan to be bought for $16 billion by SBC Communications Inc._(SBC.N: Quote, Profile, Research) .

Analysts widely expect the review to result in AT&T exiting its five year agreement to rent space on Sprint's network if the SBC deal closes as expected in the first half of 2006.

"I would expect that deal to unravel" said Davenport & Co. analyst Drake Johnstone who believes AT&T will depend solely on mobile services from Cingular Wireless the largest U.S. mobile service and a venture of SBC and BellSouth Corp._(BLS.N: Quote, Profile, Research) .

AT&T Chairman David Dorman, said AT&T still plans to offer a wireless service this year but indicated that it would sell Cingular services to its customers after the SBC deal.

"To the extent that we can drive greater penetration for wireless in our customer base for Cingular, I think that's great news for Cingular and both its partners and certainly for our customers," Dorman said in a telephone news conference.

Sprint, which plans to buy Nextel Communications Inc. (NXTL.O: Quote, Profile, Research) this year, declined comment on any financial implications if AT&T leaves their agreement early and AT&T did not discuss any such costs in its conference call.

It had said it expected the deal with AT&T to help it gain additional revenue from AT&T's business customers.

"Sprint just lost a big customer," said telecommunications industry analyst Jeff Kagan.

But Johnstone downplayed the significance of AT&T's use of Cingular for Sprint investors. He noted that will pick up new business clients from Nextel, which mainly provides services to small and medium sized businesses and government agencies.

Sprint has been the most willing provider of wholesale services in the United States, setting up deals with Virgin Mobile USA, Walt Disney Co.'s (DIS.N: Quote, Profile, Research) sports network ESPN and Qwest Communications International Inc._(Q.N: Quote, Profile, Research) .

AT&T had said it would launch its wireless resale service using Sprint's network sometime in the next few months. Cingular, which bought AT&T Wireless for $41 billion in October, had agreed to give back the AT&T brand for wireless.

Regional operator SBC will create the biggest U.S. telecommunications operator together with AT&T, which pulled back from the residential telephone services in July to focus on business clients.

Sprint shares were up 55 c

01-30-2005, 6:22 PM	#1 (permalink)
TNDan21 Join Date: Dec 2001 Location: Kingsport, TN Posts: 5,958 Phone(s): LG enV2, Samsung t219 Provider(s): Verizon Wireless, T-Mobile Devices: iPod Nano Thanks: 0 Thanked 4 Times in 4 Posts	Report: SBC to acquire AT&T for $16 billion NEW YORK - Local phone giant SBC Communications Inc. has agreed to acquire AT&T Corp. for roughly $16 billion in cash and stock, according to a published report. Citing sources close to both companies, The Wall Street Journal reported on its Web site that the deal had been struck and that boards of both companies were planning votes Sunday afternoon. SBC spokesman Walt Sharp told The Associated Press he had “no information on anything of that nature.” “We do not comment on speculation,” Sharp said. AT&T spokesman Jim Byrnes told the AP the company does not comment on “what we consider to be rumors or speculation about mergers, acquisitions, or other business combinations.” Any such acquisition would be subject to regulatory and shareholder approvals. San Antonio-based SBC is the nation’s second-biggest regional phone company, with about 50 million local-telephone customers, mostly in the Midwest and South. AT&T is a 120-year-old telephone icon once known as Ma Bell that handled the nation’s telephone calls before it was broken apart 21 years ago. The Bedminster, N.J.-based company has nearly 30 million long-distance customers. Report: SBC to acquire AT&T for $16 billion

01-30-2005, 6:30 PM	#2 (permalink)
azcellphonejunkie The Cell Phone Junkie Join Date: Jan 2002 Location: Cave Creek, AZ Posts: 2,822 Phone(s): Treo 750, HTC Diamond, BB Pearl, iPhone Provider(s): ATT\|Prior: SPCS, Alltel, T-Mble, Nextel, Verizon Devices: Acura GPS, iPAQ rx3100, Bluetooth Thanks: 1 Thanked 10 Times in 6 Posts My Auctions	Re: Report: SBC to acquire AT&T for $16 billion Dateline on this is yesterday. Looks like it is moving forward! Very cool!

01-30-2005, 6:32 PM	#3 (permalink)
TNDan21 Join Date: Dec 2001 Location: Kingsport, TN Posts: 5,958 Phone(s): LG enV2, Samsung t219 Provider(s): Verizon Wireless, T-Mobile Devices: iPod Nano Thanks: 0 Thanked 4 Times in 4 Posts	Re: Report: SBC to acquire AT&T for $16 billion Actually this was just announced today, today is the 30th. If you do a news search of this on the internet all this information just came out about two hours ago or so.

01-30-2005, 6:47 PM	#5 (permalink)
AnthroMatt Big Meanie Join Date: Jul 2002 Location: Mesa, AZ Posts: 8,320 Phone(s): Motorola V950 Provider(s): Sprint + Airave Thanks: 3 Thanked 11 Times in 8 Posts Images: 1	Re: Report: SBC to acquire AT&T for $16 billion SBC 2005 = AT&T 1980 __________________ Motorola V950

01-30-2005, 7:06 PM	#6 (permalink)
azcellphonejunkie The Cell Phone Junkie Join Date: Jan 2002 Location: Cave Creek, AZ Posts: 2,822 Phone(s): Treo 750, HTC Diamond, BB Pearl, iPhone Provider(s): ATT\|Prior: SPCS, Alltel, T-Mble, Nextel, Verizon Devices: Acura GPS, iPAQ rx3100, Bluetooth Thanks: 1 Thanked 10 Times in 6 Posts My Auctions	Re: Report: SBC to acquire AT&T for $16 billion You got that right! 1st AT&T wireless, now the landline division! They are cleaning up!

01-31-2005, 12:06 AM	#7 (permalink)
Gonz Join Date: Oct 2002 Location: Southern Wisconsin Posts: 537 Phone(s): USCC Nokia 6235i, USCC Nokia 6255i Provider(s): USCC, American Roaming Network... LOL Thanks: 0 Thanked 0 Times in 0 Posts Images: 3	Re: Report: SBC to acquire AT&T for $16 billion So much for competition around here, well, other than VOIP, I only have one choice for landline service, Centurytel...Everybody hates them...We want VZ or SBC to buy them out! $55/mo for regular phone serivce... There is this great small independent phone company down in Elkhorn, WI...Where I work in the summer. SLD, State Long Distance, one of the only original independent phone companies in WI today... www.statelongdistance.com $15 a month for standard phone service, unbelievable!

01-31-2005, 12:07 AM	#8 (permalink)
Kenny Join Date: Oct 2001 Posts: 585 Thanks: 0 Thanked 0 Times in 0 Posts	Re: Report: SBC to acquire AT&T for $16 billion Reports: SBC to buy AT&T for $16B By Jeffry Bartash, MarketWatch Last Update: 10:55 PM ET Jan. 30, 2005 WASHINGTON (MarketWatch) -- SBC Communications has reached a tentative agreement to acquire its former parent ATT Corp. in a $16 billion deal that could spell the end of one of the most storied names in American business history, according to published reports. A story in the online edition of the Wall Street Journal, citing people close to the companies' boards, said SBC's (SBC: news, chart, profile) board approved the deal Sunday night while AT&T's (T: news, chart, profile) board was still meeting to consider the agreement. Under the terms of the deal, according to the Journal, AT&T shareholders would receive SBC shares valued at about $15 billion, as well as another $1 billion in the form of a special dividend. SBC Chairman and Chief Executive Edward Whitacre Jr. would remain in his current positions, while AT&T Chief Executive David Dorman would become president, the Journal reported. AT&T would get three seats on the new company's board, including one for Dorman. The telecom giants have been in talks for days about a transaction that could result in the creation of the largest telecommunications company in the United States. The two sides have been in merger talks several times before, with the last discussions ending in November. The deal would have San Antonio-based SBC, one of the Baby Bells, buying AT&T, the original Mal Bell that was splintered into seven regional telephone companies and a large long-distance company by a landmark 1984 antitrust ruling. Such a deal would face heavy regulatory scrutiny. If the once "unthinkable" deal is approved by regulators, SBC would become the nation's largest phone company and the first to extend its tentacles into every key segment of the communications market. The biggest object of SBC's affection is AT&T's corporate-services business. Overnight, SBC would obtain 3 million business customers and leap into the No. 1 position in that market. Still, the merger could be hard for SBC investors to swallow. Under severe competitive pressure, AT&T has seen its revenue tumble from a peak of $50 billion in 1999 to just $30 billion in 2004, with sales expected to fall another $5 billion over the next 12 months. For AT&T's beleaguered employees and investors, however, SBC would act as a "white knight," rescuing the company from a dreary future of ever-dwindling sales and profits. That's why shares of AT&T soared Thursday when news of merger talks emerged. SBC stock, on the other hand, fell sharply On Friday, AT&T added 11 cents to close at $19.71. SBC fell again, though only by a nickel, closing at $23.62. Antitrust experts now believe the merger of AT&T with one of its Baby Bell offspring can win regulatory approval given radical regulatory and technological shifts in the communications industry. Nonetheless, the sale of AT&T is likely to face sharp criticism from consumer groups and some lawmakers who are concerned about the growing consolidation in the domestic phone industry. In recent months, for example, Cingular Wireless has acquired AT&T Wireless and Sprint has announced plans to buy Nextel Communications. In light of the merger frenzy, regulators can be expected to take a long look at a proposed SBC-AT&T combination. See full story. If history follows form, a sale of AT&T could also trigger another buying spree as SBC rivals Verizon Communications and BellSouth Corp. review whether they need to acquire a long-distance network. Potential targets would include MCI Inc. (MCIP: news, chart, profile) and Qwest Communications (Q: news, chart, profile) or smaller operators such as Level 3 Communications (LVLT: news, chart, profile) . Still, long-distance competition remains intense, and it could be a difficult market for companies such as SBC to master. At the same time, technological changes are radically reshaping the phone industry, while new competitors such as cable TV operators are entering the market. The move could pose other difficulties, too. By acquiring AT&T, SBC would put itself in direct competition with BellSouth, its partner in the Cingular Wireless joint venture. Moreover, Cingular recently spent $41 billion to buy AT&T Wireless, funded in large part by SBC. The company will now have to take significantly more debt to pay for the AT&T purchase. Yet top SBC executives believe they need to serve every part of the communications market -- local phone, long-distance, Internet, wireless and even television service -- to be successful. The looming threat from cable has only exacerbated the company's concerns. Over the past decade, SBC has been one of the industry's most aggressive acquirers. When the company was formed after the government's 1984 breakup of the AT&T monopoly, SBC was the smallest of the seven local "Baby Bells. Now the company is the second largest of the four remaining Bells, serving 36 million households in 13 states, including Texas and California. SBC is also the 60 percent owner of Cingular Wireless, the nation's largest wireless phone provider. SBC now has a market value of nearly $80 billion, dwarfing its former parent. A shrunken AT&T is valued at just over $15.5 billion, far below its all-time high. Yet AT&T did generate lots of cash in 2004 -- $3.7 billion in so-called free cash flow -- mostly by jettisoning workers and taking other steps to slash costs. Some analysts say SBC could pay off the purchase price within a few years by further lowering costs and pocketing the large-if-dwindling amount of cash AT&T produces. Among other things, SBC would be expected to eliminate thousands of additional jobs.

01-31-2005, 3:16 PM	#9 (permalink)
DanPFW Junior Member Join Date: Feb 2004 Location: Minnesota Posts: 215 Phone(s): MotoK1m Provider(s): CDMA Thanks: 0 Thanked 0 Times in 0 Posts Images: 9	Re: Report: SBC to acquire AT&T for $16 billion Anybody have any thoughts on how this will affect AT&T's MVNO agreement with Sprint PCS? I can't imagine SBC would want to be selling wireless service for 2 different networks, would they? It would appear that this merger COULD affect the number of virtual wireless providers! Dan

01-31-2005, 5:20 PM	#10 (permalink)
bobolito iPhone 3G 16GB (White) Join Date: May 2002 Location: New Sanfrakota Posts: 12,378 Phone(s): iPhone 3G, RAZR V9, Sierra 875 3G Aircard, HP iPaq Classic 110 Provider(s): AT&T Mobility Devices: WiFi cards/Access points Thanks: 3 Thanked 11 Times in 10 Posts Images: 50 My Auctions	Re: Report: SBC to acquire AT&T for $16 billion If this goes through, so much for Verizon's monopoly in my area. If SBC can take over AT&T's VoIP home service and DSL offerings and put them into a bundle with Cingular, that would be great competition for Verizon. __________________

01-31-2005, 9:08 PM	#13 (permalink)
Andy Join Date: May 2003 Location: Campione, Italy Posts: 10,285 Phone(s): HTC 6900 Touch, Motorola RAZR V3i Provider(s): VZW, Vodafone D2, Solomo, Swisscom Mobile Thanks: 0 Thanked 3 Times in 3 Posts Images: 130	Re: Report: SBC to acquire AT&T for $16 billion Who would have thought that the wireless/landline business would change so rapidly just before news leaked about AT&T Wireless wanting to sell...sorry for the off topicness, but I just had to write that.

02-01-2005, 12:36 AM	#16 (permalink)
Fire14 Easy,Cheap & Sleazy Join Date: Sep 2002 Location: Union County NJ Posts: 8,331 Phone(s): Razr V3xx, enV, Adventure, 6010 Provider(s): AT&T, Verizon, T-Mobile ToGo Thanks: 0 Thanked 0 Times in 0 Posts Images: 293 My Auctions	Re: Report: SBC to acquire AT&T for $16 billion AT&T to review Sprint wireless resale deal NEW YORK, Jan 31 (Reuters) - AT&T Corp. (T.N: Quote, Profile, Research) said on Monday it would review its deal to resell mobile telephone services from Sprint Corp. (FON.N: Quote, Profile, Research) in light of its plan to be bought for $16 billion by SBC Communications Inc._(SBC.N: Quote, Profile, Research) . Analysts widely expect the review to result in AT&T exiting its five year agreement to rent space on Sprint's network if the SBC deal closes as expected in the first half of 2006. "I would expect that deal to unravel" said Davenport & Co. analyst Drake Johnstone who believes AT&T will depend solely on mobile services from Cingular Wireless the largest U.S. mobile service and a venture of SBC and BellSouth Corp._(BLS.N: Quote, Profile, Research) . AT&T Chairman David Dorman, said AT&T still plans to offer a wireless service this year but indicated that it would sell Cingular services to its customers after the SBC deal. "To the extent that we can drive greater penetration for wireless in our customer base for Cingular, I think that's great news for Cingular and both its partners and certainly for our customers," Dorman said in a telephone news conference. Sprint, which plans to buy Nextel Communications Inc. (NXTL.O: Quote, Profile, Research) this year, declined comment on any financial implications if AT&T leaves their agreement early and AT&T did not discuss any such costs in its conference call. It had said it expected the deal with AT&T to help it gain additional revenue from AT&T's business customers. "Sprint just lost a big customer," said telecommunications industry analyst Jeff Kagan. But Johnstone downplayed the significance of AT&T's use of Cingular for Sprint investors. He noted that will pick up new business clients from Nextel, which mainly provides services to small and medium sized businesses and government agencies. Sprint has been the most willing provider of wholesale services in the United States, setting up deals with Virgin Mobile USA, Walt Disney Co.'s (DIS.N: Quote, Profile, Research) sports network ESPN and Qwest Communications International Inc._(Q.N: Quote, Profile, Research) . AT&T had said it would launch its wireless resale service using Sprint's network sometime in the next few months. Cingular, which bought AT&T Wireless for $41 billion in October, had agreed to give back the AT&T brand for wireless. Regional operator SBC will create the biggest U.S. telecommunications operator together with AT&T, which pulled back from the residential telephone services in July to focus on business clients. Sprint shares were up 55 cents or more than 2 percent at $23.71 in afternoon trade on the New York Stock Exchange where AT&T stock was down 66 cents or more than 3 percent at $19.05. (Additional reporting from Justin Hyde in Washington) __________________ Laugh Uncontrollably... It clears the mind

02-01-2005, 12:41 PM	#17 (permalink)
DanPFW Junior Member Join Date: Feb 2004 Location: Minnesota Posts: 215 Phone(s): MotoK1m Provider(s): CDMA Thanks: 0 Thanked 0 Times in 0 Posts Images: 9	Re: Report: SBC to acquire AT&T for $16 billion What are the chances this was all thought up long ago? First, AT&T splits off the wireless, easier to sell. Cingular buys the wireless division. Now the wire line company is easier to buy because it's a smaller unit. One of Cingular's parents then buys the wire line business. AT&T continues to sell wireless service on the network they used to own, if this sale goes through? But, what is the point of SBC selling wireless service to compete with Cingular. Why not just give customers a break if they have SBC landline + Cingular wireless? Someone’s gotta think about conspiracies!

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