Feeds

SBC rings AT&T for $16bn mega-merger

Talking telephone numbers...

  • alert
  • submit to reddit

Boost IT visibility and business value

SBC is buying former parent AT&T for $16bn in cash and shares. AT&T, or Ma Bell, was started in 1875 by Alexander Graham Bell.

AT&T shareholders will get 0.77942 SBC shares for every AT&T share held and a special dividend of $1.30 per share. The deal was agreed by directors yesterday.

SBC is a local specialist in the US. It has 52 million access lines and 5.1m DSL customers. Its broadband network covers 77 per cent of its local customer locations. It owns 60 per cent of US mobile firm Cingular which has 49m subscribers.

AT&T works at the other end of the market - it serves almost every member of the Fortune 1000. Its global network covers 50 countries and it has 26 internet data centers, 13 in the US and 13 across the world. It also claims the "world's premier communications research organization, AT&T Labs"

Edward Whitacre, SBC chairman and chief executive officer, who will lead the new company, said: "The communications industry is undergoing a profound transformation as it transitions to unified, IP-based networks capable of delivering a host of integrated services. To manage this evolution, customers need a partner with the resources to provide new service platforms and product sets, while maintaining world-class reliability and security. This merger creates that company." He promised the new company would regain America's lead in communications.

SBC expects the merger to slow revenue growth in the short term but have a positive impact by 2007. Opportunities include more wireless sales in the enterprise market and the chance to take AT&T IP services, traditionally sold to enterprises, to smaller business and residential customers.

AT&T has about $6bn in debt and SBC has $26bn, excluding Cingular Wireless.

Whitacre will serve as chairman and CEO of the new firm. David Dorman, AT&T chief executive, becomes president of the new firm. No decision has been made on what the firm will be called.

Press release available here. ®

Related stories

HP and SBC pledge to service you together
AT&T to deploy WiMAX in 2006
SBC plans über-network

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.