With AT&T Wireless'
Cingular, a joint venture of BellSouth
Under the deal, Cingular, which will pay $41 billion to acquire AT&T Wireless later this year, will get to keep the AT&T Wireless name for six months in exchange for buying $100 million of network services from AT&T. After that time, the troubled telecom could pick up the brand for its own use. AT&T currently sells wireless services through a partnership with Sprint
Although I'm glad to see a dispute like this end, I'm confused as to why there was a fight in the first place. I thought the reason for the deal was to expand Cingular's network to make it more competitive with chief rival Verizon
What irks me the most is that I don't see how this whole mess has done anything to benefit investors. All it did was add costs. And even though there are merits to the combination, I can't envision a short-term win for anyone other than AT&T Wireless' and Cingular's competitors. Too bad it's too late to hang up on this deal.
For more Fool coverage of the AT&T Wireless-Cingular merger:
- Cingular's two wrongs could make a right for investors.
- Cingular's sellout makes room for the merger.
- Customers aren't likely to attend the wedding of the two telecoms.
- Especially after a bum Q1 for AT&T Wireless.
Think I'm too dour on telecom and AT&T Wireless' prospects? Have more insights to share on the telecom industry? Then you might want to read our duel about telecom stocks. It's the kind of bare-knuckles analysis you'll find only at Fool.com.