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Good news is if this deal doesn't go through, T-Mobile gains to make over a billion dollars to make its network better/faster. * AT&T paid about 4 billion in ca
by ashbrahma 12y ago
Good news is if this deal doesn't go through, T-Mobile gains to make over a billion dollars to make its network better/faster. * AT&T paid about 4 billion in cash and spectrum when the last merger fell apart..
- bicknergseng 12y agoBest business model ever.
- gtremper 12y agonext up, Verizon.
- sbd 12y agoWhere did they announce the terms of the break fee?
- DAddYE 12y agohere: http://online.wsj.com/news/articles/SB10001424052702304655304579552301170337002?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304655304579552301170337002.html http://online.wsj.com/news/articles/SB1000142405270230465530...
- stephengoodwin 12y agoHow does T-Mobile get away with negotiating such good break up fees?
- tpeng 12y ago$1 billion is only about 3% of the deal price. It's not that high considering the regulatory risk.
- jessriedel 12y agoCan only explain the business reasoning surrounding breakup fees? Why does one company stand to lose more or less than another one if things don't go through? Why is the merger worth more to one than the other?
- rogerbinns 12y agoIt is distracting to the target and will require them to do lots more work. For example they will need to provide the materials necessary for due diligence. The fee ensures the acquirer is serious, and that the target is adequately compensated if it doesn't go through. The acquirer also makes it harder for others to bid because they too need to take into account the fee. https://en.wikipedia.org/wiki/Breakup_fee https://en.wikipedia.org/wiki/Breakup_fee