Q1&2 v2 - AT&Ts Acquisition of BellSouth Part 1...

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Part 1 Motivation of buyer and seller 1. Industry Background The first five years in 21 st century has seen the revolutionary change in the telecommunication industry that the wireless and internet has bring more convenience to people than the fixed telephone. However, TV is still a necessary for most families and the wireline service has mixed with new technology like VOD and HD display. Thus it’s very important for the telecommunication companies to integrate all the wireline, wireless, broadband and cable services to provide a solution package to the costumers. This acquisition is expected to reach a convergence effect with bringing a wireless company into a subsidiary and integrating the wireline market of the two companies simultaneously. 2. Buyer The AT&T Inc. expected synergies of $18 billion from the combination of two companies and benefit their shareholders. The synergies would come from the significant growth in the cash flow after 2007 and 2008. The new company will occupy the market as one the three oligopolies in the telecommunication market in US and gain the economies of scale. 3.
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Q1&2 v2 - AT&Ts Acquisition of BellSouth Part 1...

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