AT&T has decided to formally end its attempt to acquire T-Mobile USA, the company announced Monday.
Amidst strong opposition from the Federal Communications Commission and the Department of Justice, the United State's largest wireless service provider decided to drop its nine-month $39 billion bid to take over Deutsche Telekom's American subsidiary. In its statement, AT&T announced its disapproval with the FFC:
"The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled."
Now that the deal is off the table, AT&T will need to pay T-Mobile USA's parent company, Deutsche Telekom, a $4 billion break-up fee. The fee will be paid in cash ($3 billion) and $1 billion worth of spectrum.
[via All Things D]