AT&T/T-Mobile Merger Winners & Losers (T) (AAPL) (ALU) (ERIC) (S) (AMT) (more...)
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: -0.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: -0.3%
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Below is a list of winners and losers from AT&T's (NYSE: T) massive $39 billion deal over the weekend to acquire T-Mobile USA from Deutsche Telekom, which includes plans to expand its 4G LTE network to cover 95 percent of the US population.
WINNERS:
AT&T (NYSE: T): AT&T wins the most as it gains access to tens of millions on new customers and sees serious cost synergies of $3 billion per year.
Apple (Nasdaq: AAPL): Apple could be a winner as 33.7 million T-Mobile USA subscribers will soon be able get Apple's iPhone.
4G LTE suppliers: With an increased $8 billion investment in the US to buildout its 4G LTE network, some suppliers could benefit. Alcatel-Lucent (NYSE: ALU), Ericsson (Nasdaq: ERIC), RadiSys (Nasdaq: RSYS), Qualcomm Inc. (Nasdaq: QCOM), JDUS (Nasdaq: JDSU), Sierra Wireless (NASDAQ: SWIR), Cisco (Nasdaq: CSCO).
LOSERS:
Sprint (NYSE: S): Sprint was said to be in talks to acquire T-Mobile before AT&T swooped in. Sprint would seem to have little options, unless of course Verizon (NYSE: VZ) targeted the company in a large takeover.
Tower Stocks: American Tower Corp. (NYSE: AMT), Crown Castle International Corp. (NYSE: CCI), SBA Communications Corp. (Nasdaq: SBAC) could be weak as the deal could mean less immediate need from AT&T for new towers.
Network Equipment Suppliers: Carrier consolidation is not a good thing for network equipment suppliers that supply both AT&T and T-Mobile. Big ones include Alcatel-Lucent (NYSE: ALU), Ericsson (NYSE: ERIC) and Nokia Siemens (NYSE: NOK) (NYSE: SI). On the 4G buildout, Alcatel-Lucent and LM Ericsson could benefit as they are both suppliers to AT&T.
Satellite Companies: There has been speculation for years that AT&T would buy DirecTV (NYSE: DTV) or EchoStar (Nasdaq: DISH), so a huge deal for T-Mobile would seem to throw cold water on this idea.
Google (Nasdaq: GOOG) (bad): T-Mobile was a great partner for Google's Android platform. AT&T will likely put less emphisis on Android.
WINNERS:
AT&T (NYSE: T): AT&T wins the most as it gains access to tens of millions on new customers and sees serious cost synergies of $3 billion per year.
Apple (Nasdaq: AAPL): Apple could be a winner as 33.7 million T-Mobile USA subscribers will soon be able get Apple's iPhone.
4G LTE suppliers: With an increased $8 billion investment in the US to buildout its 4G LTE network, some suppliers could benefit. Alcatel-Lucent (NYSE: ALU), Ericsson (Nasdaq: ERIC), RadiSys (Nasdaq: RSYS), Qualcomm Inc. (Nasdaq: QCOM), JDUS (Nasdaq: JDSU), Sierra Wireless (NASDAQ: SWIR), Cisco (Nasdaq: CSCO).
LOSERS:
Sprint (NYSE: S): Sprint was said to be in talks to acquire T-Mobile before AT&T swooped in. Sprint would seem to have little options, unless of course Verizon (NYSE: VZ) targeted the company in a large takeover.
Tower Stocks: American Tower Corp. (NYSE: AMT), Crown Castle International Corp. (NYSE: CCI), SBA Communications Corp. (Nasdaq: SBAC) could be weak as the deal could mean less immediate need from AT&T for new towers.
Network Equipment Suppliers: Carrier consolidation is not a good thing for network equipment suppliers that supply both AT&T and T-Mobile. Big ones include Alcatel-Lucent (NYSE: ALU), Ericsson (NYSE: ERIC) and Nokia Siemens (NYSE: NOK) (NYSE: SI). On the 4G buildout, Alcatel-Lucent and LM Ericsson could benefit as they are both suppliers to AT&T.
Satellite Companies: There has been speculation for years that AT&T would buy DirecTV (NYSE: DTV) or EchoStar (Nasdaq: DISH), so a huge deal for T-Mobile would seem to throw cold water on this idea.
Google (Nasdaq: GOOG) (bad): T-Mobile was a great partner for Google's Android platform. AT&T will likely put less emphisis on Android.
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