AT&T pulls out of $39M bid


AT&T’s bid to take over T-Mobile USA is over. The telecommunications giant has just withdrawn their offer to buy T-Mobile noting that they cannot withstand the Obama administration’s resistance to the possible merger.

AT&T released a statement stating that they will continue spending to improve service for their subscribers. At the same time, they also said that they cannot surmount the opposition of the Justice Department and the Federal Communications Commission.

The company would have paid Deutsche Telekom $4 billion and wireless spectrum for the buy out. The two companies will then start a seven-year roaming agreement which will enable T-Mobile subscribers better coverage.

The proposal was revealed last March, and AT&T has strongly pushed for the merger to expand its wireless spectrum to improve their service. The buy-out would have helped in decongesting the networks and improve data network.

Randall L. Stephenson, the chairman and chief executive of AT&T, headed the deal.

AT&T went on an offensive to woo individuals to their cause. They lined up lawmakers, customers and partners to help divulge the benefits of the possible merger.

But the move did little to get the nod of government regulators.