back to article How much did T-Mobile US make from that failed AT&T buyout? How about $7.7bn

A failed 2011 merger with AT&T is paying off in a big way for T-Mobile US. Analysts at New Street Research (via The Wall Street Journal) estimate that a $1bn spectrum package T-Mobile US received in the wake of the ill-fated acquisition has ballooned in value to $4.7bn. The frequencies were part of a $4bn breakup package AT&T …

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WTF?

Been there

A acquisition requires audits of every minute detail, it locks finances, it halts new deals, silences many types of advertisements, freezes hiring and firing, and throws all plans into doubt. Either you get enormous insurance money from the buyer or you expect that the deal is meant to put you out of business.

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And now we know ...

how they can afford to offer such sweetheart deals to steal customers from the bigger guys. Hopefully they'll use a little of it to improve their network, as well.

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Re: And now we know ...

Well, they still have the spectrum, so they haven't turned those gains into cash.

The spectrum has definitely improved their network, though

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Re: Well, they still have the spectrum

Yeah, that's the problem with a windfall of raw resources. You may still need more cash than you've got to fully exploit it. (Which was kind of his point about the way the auction went.) Hopefully it all works out for them. We need more competition in this field.

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