FCC To Hold Administrative Hearing For AT&T, T-Mobile Article

Chalk up yet another roadblock for the AT&T takeover of T-Mobile as FCC Chairman Julius Genachowski announces an Administrative hearing regarding the proposed takeover. The move is seen as another setback for the two companies already facing opposition from the Justice Department in the form of antitrust lawsuit resulting in a February 13th trial date. The FCC hearing would occur at the conclusion of the antitrust trial between AT&T and the Department of Justice.

The move adds to the already complex nature of the deal isn’t seen as a death knell for the deal but rather as another obstacle both companies will have to overcome.

Wall Street Journal

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  • Nelson
  • Anonymous

    Note To Self: Don’t try to take over another large company when I become the head of a large company in that same field.  It’s too big of a headache.

    BTW…I hope we all hear the death knell after the hearing :)

  • Nick

    wow, there’s a lot going on in that FCC logo.  I can see the design team now:  more towers…more electricity…more pearls!!

  • Commander_Fury

    Ever since the HR Block / TaxAct merger was nixed this one really looked bleak . That has really been the turning point . Kinda the same setup . TaxAct a value competitor being bought up by a bigger pricier company , HR Block . And that is really smaller potatoes . It would take a change of administrations for this merger to pass . Feeling much better . 

  • slickjammy

    Characterizing this as just another “setback” is complete b.s.  The FCC does not do administrative hearings on a merger if they intend to approve it in any way limited way.  Rather, they put conditions on the merger.  An administrative hearing is a kiss of death.  Its basically the FCC’s way of saying there is no support for AT&T’s arguments for the merger.  This merger is not going to happen.  It just ended today.  

    • slickjammy

      btw, the echo star directv deal failed because of this.  Who the heck is reporting this stuff??

  • Anonymous

    I tried looking up what exactly an FCC administrative hearing is and found this article.  It seems to offer a bit more information.

    http://thehill.com/blogs/hillicon-valley/technology/195179-fcc-chairman-recommends-administrative-hearing-for-atat-t-mobile-deal

  • TMoFan

    DT and at&t: give it up! It’s really satisfying watching this explode into a million pieces, when at one time analysts and many posters here and on other tech blogs thought it was a foregone conclusion. I’m really happy because whatever shape T-Mobile takes in the future, it will most likely mean that an important national carrier is retained. First step is to get rid of DT. I think a change in ownership is the best thing for T-Mobile. 

  • BigMixxx

    It’s over…..No question, as to ATT’s position right now.

    Here is what’s at stake…
    REAL BIG…Giving a definitive #1 to ATT with a national presence untouchable….41 to 45% of the market…

    EVEN BIGGER:  Giving DT roughly 10 billion a year (8% stake) of the company from now on….

    How?
    Leveraging or Financing a part of that 25 billion through T mobile assets (Stores, Towers, Spectrum, etc, etc, etc) and AT&T loans with a couple of Banks.  T mobile will end up being highly leveraged giving AT&T room to refinance that debt over the next 5 years at REALLY cheap rates….REALLY cheap….Effectively 25 billion will be about 15 billion in real cash, with 10 billion devalued….ALL of T mobile’s positions will be gone.  

    T mobile U.S.A./DT will need to really rethink an American Strategy.  For DT to really step out of the picture, Leverage just that part of the the company with Blackstone (they’ve done this before) then sell it to AT&T.  It’s backwards but it will work (if they want the deal to go through). BUT…it’s too late.

    This deal is DEAD….and there is no other way to describe it. 

    • ItsMichaelNotMike

      Great analysis and the last sentence is spot on.

      This deal is now dead. AT&T knows it, DT for sure knows it (but DT cannot do anything that might get back to AT&T that it could interpret as not supporting the deal. If AT&T can find that, the Company avoids the breakup fee).

      • BigMixxx

        Thanks!  and Yup, completely agree.  I don’t think they will get after ATT at this point.  Best Thing for them to do is go back to Blackstone and DT to figure out how to really figure through some of the financials.  DT will hurt, But Blackstone will try to get something out of this deal.  I think that 3 (or 6 billion) may go back to them to figure another way to finance a deal or spin off T-mobile US into it’s own entity. 

        I’m liking the spin off and raise capital OR Blackstone can increase it’s stake and force a spinoff.  Google, while holding the cash, would not be in the right position to purchase T mobile.  Doesn’t really fit in the business model.

        Now Sprint is worth about 7 billion right now and they need a change in strategy; however they can’t afford a purchase of yet another network…BUT the upside to such a deal may help both companies.  I’m not sure right now of what would be next for T mobile, however a strategy has to be developed to focus on growth…and none of that stuff from this past Saturday….

        And last but not least, while I am not a fan,  Get an iPhone.  Watch the flock grown by leaps and bounds, and you will be in a good position to increase specturm with a metroPCS purchase; plus your roaming agreements with ATT…best company…

  • Anthonynyc1a

    we are lucky if this deal is death,sorry att.

  • Littlesis1774

    I think regardless of what happens we will get the iphone

    • ItsMichaelNotMike

      LOL… I guess the iPhone hopefuls will take this thought to T-Mobile’s grave.

      Tell me, when TMOUS ceases to exist will you be providing the online eulogy?

      “I think regardless of the death of T-Mobile we will get the iPhone.”

      • Littlesis1774

        Actually I am started to believe that the others is right and it was AT&T who stop Apple into giving us the iphone because I would you explain a C-spire in getting it

        • Giraffe

          C-Spire got it because they made a deal with Apple that gave them enough profit from selling it on their network.  Done and done.

        • Littlesis1774

          Well it looks like now that AT&T has given up we will get the iphone regardless