According to Reuters:
“AT&T Inc has been exploring a possible bid for a European carrier such as Vodafone Group Plc, but faces resistance from some investors concerned about the continent’s cut-throat competition and complex regulations.”
That’s not half the problem…
Just to be clear on a few misconceptions that AT&T might have:
- Europe as far as telecom goes, est le cours de grande, I hope you don’t expect the same monopolistic margins you command in the US.
- Whatever spin your financial (or marketing) people are spinning, represents desperation.
- Americans would be better served if a European telecom bought AT&T.
- Hello. Remember T-Mobile?
I wonder who runs this company.
AT&T’s massive loss this evening has been telegraphed since… T-Mobile.
I wrote about this in November (AT&T is going to lose 4 Billion!) and even back in August (AT&T + T-Mobile = Arnaque).
To be honest I’d lost interest. The obvious stupidity of this deal baffled me at the moment, but impotent I moved on. I should have taken note…
Tonight AT&T posted a $6.7 Billion quarterly loss, with margins falling. And considering the collapse of the $39 Billion deal, a humbling experience by any measure, why not spend the earnings-call reassuring your investors? Or even groveling a bit? Mr. Stephenson you might have even tried to be humble. But bashing the FCC?
I’m reminded of Netflix!
Here’s a quote from Reuters:
In his first presentation to investors since the December collapse of his $39 billion bid to buy Deutsche Telekom’s T-Mobile USA , Chief Executive Randall Stephenson spent much of the earnings call criticizing the U.S. Federal Communications Commission for opposing the deal.
The FCC colludes in your partial monopoly, companies with far less firepower would have managed both the deals and the marketing many times better than you have.
Mr. Stephenson, why do you still have your job?
This AT&T T-Mobile deal was a really stupid idea to start with. What were they thinking?
I wrote about it back in August (here and here) and it looks like we’re starting to see the end, atleast I hope so.
AT&T braces for T-Mobile deal collapse