Monday, December 19, 2011

Putting The AT&T/T-Mobile Breakup Into Perspective.

All that I have to say about the deal, is that the breakup is going to cost AT&T $4 BILLION dollars... Put another way, that destroys more than the entirety of book value that AT&T was able to produce in the past year.

If you are a shareholder of T, you lost a year of gains in book value. If you look at the earnings of the company, you have lost significantly more than that.

That said, you did get a decent dividend that makes this a bit less painful.

All that for one botched acquisition.

I wonder how long the CEO will last.

Disclosure/Disclaimer: I own no financial instruments in regard to any of the companies mentioned. I reserve the right to change any of my positions at any time. This is not advice of any kind. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.

1 comment:

Anonymous said...

As a T mobile customer, I'm glad since ATT service is terrible. If I was a shareholder of either it is a devastating loss.

I can see how the SEC is stepping in since ATT would almost have a monopoly on SIM card service in the US.