Baby Bell buying Ma Bell (SBC Set to Buy AT&T)

[tritsofme]

SBC to buy former parent AT&T despite drop in long-distance business; analysts question $16B deal.

NEW YORK (CNN/Money) - After 128 years as an independent company, since just after the invention of the telephone that's the centerpiece of its business, AT&T will be absorbed into its offspring SBC Communications in a stock-and-cash deal valued at $16 billion.

SBC also will be assuming about $6 billion in AT&T's net debt, bringing the total value of the deal to $22 billion.

SBC (Research), announcing the deal Monday, said it could find value in AT&T (Research) even with the decline in its traditional long distance business. Shares of AT&T fell about 5.6 percent in early trading Monday morning while shares of SBC were down slightly.

The deal marks the end of several eras, one that started with company founder Alexander Graham Bell, and another that began when a federal judge split the original company into eight separate entities in 1984.

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http://money.cnn.com/2005/01/31/technology/sbc_att_deal/index.htm

[mopinko]

1. anti-trust law is dead

i swear.

[tritsofme]

2. Ma Bell is such a shadow if its former self

Its hardly anything to get up in arms about.

[PDittie]

3. Isn't that what children are supposed to do?

Turn into their parents?

[kysrsoze]

4. AT&T would go under in another year if they were not bought

AT&T has sold off its cable business, cellular business and has stopped marketing to consumers. It simply cannot compete in areas other than high-end business data solutions and backbone. SBC lacks that business expertise, which is why they are buying AT&T. SBC must do this to compete with Verizon for business customers. Bellsouth may end up buying MCI. There is no monopoly here.

In another year, the AT&T stock would have had an even lower price and its shareholders would have suffered more.

[happynewyear]

6. I wonder how this will affect AT&T retirees

I'm worried because my uncle is an AT&T retiree. :(

[snooper2]

5. Let em' ! One fucked up company buying another =

A big ass mess...

More business for the CLEC I work for :)

[catmandu57]

7. I use them for long distance

I wonder if I should switch? Last week AT+T's ceo got a sweetheart deal, and I thought about it then. I think I'm going to look into another carrier.

[SoCalDem]

8. And now it's come full-circle..

Bell "just HAD to be broken up" so we would get better service and lower rates..

Before the breakup, it cost us $9 a month..with FREE repairs to equipment we did not have to buy..Granted we did have to DIAL the number back then in the olden days, but I would gladly return to those days..

[sarcasmo]

9. Getting DSL and will be dumping the home phone, bye bye SBC.

My wife and I have the all tell family deal where our phone calls to each other are free. We have chosen to dump SBC and AOHELL and go with Comcast high speed dial up. It feels good to say bye bye to SBC and there 65 dollar basic phone service, what a joke.