Linked by Thom Holwerda on Sun 20th Mar 2011 20:20 UTC
PDAs, Cellphones, Wireless A major deal just went down in the United States, which seriously shakes up the mobile industry on the other side of the pond: AT&T has announced it plans to buy T-Mobile USA from Deutsche Telekom.
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Why would T-Mobile sell?
by spiderman on Mon 21st Mar 2011 07:13 UTC
spiderman
Member since:
2008-10-23

I don't get it. Why would T-Mobile sell its US division? Their core business is to provide mobile carrier service. Their US division is precisely doing just that. Why would they want to drop their US customers? I don't think the US division is underperforming either. They're not in the red and they don't need immediate cash, unless they have a hidden plan. Are they going to expand elsewhere? WTF?

Reply Score: 3

RE: Why would T-Mobile sell?
by jal_ on Mon 21st Mar 2011 07:42 in reply to "Why would T-Mobile sell?"
jal_ Member since:
2006-11-02

Exactly the same things sprang to my mind when I read the news. Why would they want to sell?

Reply Parent Score: 2

RE: Why would T-Mobile sell?
by broken_symlink on Mon 21st Mar 2011 14:47 in reply to "Why would T-Mobile sell?"
broken_symlink Member since:
2005-07-06

Deutsche Telekom is supposedly in debt. According to this article http://blogs.wsj.com/source/2011/03/21/deutsche-telekom-is-the-darl... They will be using $13 billion to pay off some of their debt.

Reply Parent Score: 4

spiderman Member since:
2008-10-23

I see. It looks like some share holders want quick money. They will kill Deutsche Telekom, get all the cash they can get from it and go elsewhere with it. Thanks to their lower debt and share buyback the shares will artificially jump so they can sell at a high price. In the next few years, DT get cut to shred in Europe.

Reply Parent Score: 2