AT&T (T) Might Need to Sell Out More than Expected to Walk Away from T-Mobile Deal
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Price: $16.33 --0%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
EPS Growth %: -11.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
EPS Growth %: -11.7%
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AT&T (NYSE: T) may have lost potential assets and market share with the U.S. DoJ filing a complaint against the merger yesterday, but overall funds lost to the dead deal may be more.
According to the NY Post Thursday morning, AT&T could stand to part with $5 billion in breakup fees, lost spectrum, and a national roaming agreement with T-Mobile.
There is potential to alter the deal to make it more appealing to the U.S., but asset sales and divestitures in excess of $10 billion could wipe out the value of almost one-quarter of the deal.
Should the AT&T deal fail, some speculate that Sprint (NYSE: S) will be quick to move in and attempt to grab T-Mobile from Deutsche Telekom. But with Sprint being in a distant third, and seeing cash burn through the last several quarters, it may need to structure a deal with equity rather than cash. Sprint had 52 million wireless subs at the end of the second-quarter, and combined with T-Mobile's 33.6 million, would still leave Sprint in the third position as largest wireless carrier in the U.S., but closer to AT&T and Verizon (NYSE: VZ) than it is now. AT&T last reported 98.6 million subs, while Verizon reported 106.3 million subs.
According to the NY Post Thursday morning, AT&T could stand to part with $5 billion in breakup fees, lost spectrum, and a national roaming agreement with T-Mobile.
There is potential to alter the deal to make it more appealing to the U.S., but asset sales and divestitures in excess of $10 billion could wipe out the value of almost one-quarter of the deal.
Should the AT&T deal fail, some speculate that Sprint (NYSE: S) will be quick to move in and attempt to grab T-Mobile from Deutsche Telekom. But with Sprint being in a distant third, and seeing cash burn through the last several quarters, it may need to structure a deal with equity rather than cash. Sprint had 52 million wireless subs at the end of the second-quarter, and combined with T-Mobile's 33.6 million, would still leave Sprint in the third position as largest wireless carrier in the U.S., but closer to AT&T and Verizon (NYSE: VZ) than it is now. AT&T last reported 98.6 million subs, while Verizon reported 106.3 million subs.
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