AT&T (http://www.att.com) and Deutsche Telekom AG have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately US$39 billion. The agreement has been approved by the boards of directors of both companies.
With this transaction, AT&T commits to a “significant expansion” of robust 4G LTE (Long Term Evolution) deployment to 95% of the U.S. population to reach an additional 46.5 million Americans beyond current plans — including rural communities and small towns, according to AT& Chairman and CEO Randall Stephenson. This helps achieve the Federal Communications Commission (FCC) and President Obama’s goals to connect “every part of America to the digital age.” T-Mobile USA does not have a clear path to delivering LTE, he adds.
As part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that, based on the terms of the agreement, would give Deutsche Telekom an ownership interest in AT&T of approximately 8%. A Deutsche Telekom representative will join the AT&T Board of Directors.