Who is AT&T going to merge with?
Among the biggest telecommunication companies in the US, AT&T is providing millions of customers mobile phone, internet, and television internet access. To counterbalance competitors like Verizon, AT&T has engaged in various M&As over the years hoping to expand its service offering. This has produced a lot of worry for many people, especially those wondering who AT&T may try to merge with next.
Past AT&T Mergers
Over the last several decades, AT&T has also been engaged in numerous large acquisitions. Some important illustrations are:
- BellSouth Corp: In 2006 BellSouth merged with AT&T at a $86 billion deal. This gave AT&T authority over BellSouth's large wire-based telecom operations in the nation's southeast.
- DirecTV: AT&T spent $48.5 billion to purchase DirecTV, therefore entering the satellite TV services market in 2015. AT&T was more suited to challenge the cable companies with about 20 million extra pay-TV customers obtained from this deal instantly.
- Time Warner: In the most recent year, 2018, AT&T spent $85 billion to buy media powerhouse Time Warner. With ownership of multiple media channels like CNN, HBO, TBS, and Warner Bros., this large purchase enhanced AT&T's media content and production capacity.
Based on significant mergers and acquisitions experience, AT&T is ready to engage in significant strategic purchases to grow its company into other spheres. This background helps one to identify numerous businesses that industry experts think might be the next to be acquired by AT&T.
Potential Future AT&T Mergers
These are some of the names that AT&T's prospective future merger or acquisition targets often come up under.
Comcast/NBCUniversal
In terms of strategic development, AT&T may find a fit in a merger with its competitor, cable and media behemoth Comcast/NBC Universal. Combining distribution skills with content will enable the amalgamated company to aggressively fight companies like Netflix and Disney in a developing market. Regulators may reject a merger, however, depending on anti-trust issues.
Dish Network
Getting a satellite TV client base from Dish Network also implies getting the "airwaves" bandwidth needed for 5G. Still, there are important questions about both companies' management and business goals.
T-Mobile
With a partnership with the third biggest cellphone provider T-Mobile, AT&T may easily surpass Verizon in the mobile market. Analysts are dubious if any bid will follow the same route, however, as the authorities rejected AT&T's plans to acquire T-Mobile in early 2011.
Charter Communications
Like T-Mobile, cable company Charter may provide AT&T with a ready market through which it may enter and increase market share using a merger. However, mistakes often exist when businesses attempt to combine their infrastructure and operations. Furthermore under debate is Charter's ability to make significant M&A decisions after the Time Warner Cable acquisition.
CBS Corporation
As with Time Warner, another possibility arising from a relationship with a major media station like CBS is the purchase of additional worthwhile media assets. But after AT&T has been spending on acquisitions worth more than $ 100 billion since 2016, the business could think about focusing on debt reduction above big acquisitions.
Wild Card Disruptors
Moreover, sometimes significant mergers involving a less solid partner may surprise anybody. Could AT&T, for example, take into account purchasing streaming "new media" challengers such as Netflix, Spotify, or even TikHub? Anything is justifiable!
To sum up, in the past AT&T has engaged in major acquisitions as critical elements of its expansion agenda. Everything points to further extreme acquisitions as AT&T searches for new prospects like 5G and streaming media. Only the future will reveal who AT&T could combine with, but all the players in the telecom, wireless, and media sectors should be watching for the next steps of AT&T. In these convergent sectors, a blockbuster transaction might drastically change the competitive dynamics or introduce new superpowers at any one moment.
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