AT&T and T-Mobile Merger Off

[razorsharp]

<p>

AT&T Inc. (T), whose $39 billion bid for T-Mobile USA is challenged by the U.S. Justice Department, will record one-time costs of $4 billion this quarter to reflect the risks of a collapse of the deal.
AT&T and T-Mobile owner Deutsche Telekom AG withdrew their applications to the U.S. Federal Communications Commission to focus on winning clearance from the Justice Department, the companies said in separate statements today. The pretax accounting costs reflect the potential breakup fees due to Deutsche Telekom, Dallas-based AT&T said.

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<p>[AT&T</a> to Book $4B Charge on T-Mobile Deal Risks - Bloomberg](<a href=“Bloomberg - Are you a robot?”>Bloomberg - Are you a robot?)</p>

<p>To me, it seemed obvious that the deal would not go through yet AT&T wagered $4 billion as a break up fee. Big break up fees are common but I really have no idea why. If I were a large AT&T shareholder, I would demand that all of the senior managers get canned.</p>

[dstark]

<p>Well…the company has a market cap of over $150 billion…and makes about $20 billion a year…</p>

<p>So…I think T will survive…</p>