According to a new Wall Street Journal report, AT&T’s efforts to find a prospective buyer for T-Mobile assets have “gone cold.” Citing sources familiar with the matter, the Journal indicates that a potential divestiture to Leap Wireless has gone cold as the parties concerned no longer believe such a deal would help persuade the government into allowing the deal to continue. The WSJ reports this may in fact be the strongest indicator that AT&T may abandon the $39 billion dollar deal altogether. Dish Network, MetroPCS and other foreign companies were also said to have been in the running for portions of T-Mobile’s divested assets.
There are now looming doubts in many corners of the telecom space that AT&T can salvage any potential merger deal. AT&T could still try and fight the Department of Justice in court, though alternatives to a full merger are looking more and more likely.
AT&T hasn’t commented since they agreed to request a stay in the upcoming trial with Deutsche Telekom and the Justice Department.
Wall Street Journal, Reuters