AT&T buys Dobson Communications for $2.8 Billion
By Will Park on Monday, July 2nd, 2007 at 8:00 PM PST In AT&T, Announcements, Partnerships
AT&T (NYSE: T) must have been anticipating the Apple (NSDQ: AAPL) iPhone to be a huge success, because, on Friday, it agreed to buy-out Dobson Communications for a cool $2.8 Billion. The rural wireless carrier does business under the name Cellular One and has had a working relationship with AT&T since 1990. This new deal represents a $13 per share buyout - worth $5.1 Billion when you factor in debt.
The acquisition was Randall Stephenson’s first big move as CEO of AT&T and marks the company’s re-focused concentration on the wireless industry. Some researchers are left puzzled by Stephenson’s move to acquire Dobson while AT&T is still in the midst of integrating Bell South and the AT&T Long Distance division.
Still, AT&T officials are confident that the buy-out will prove to be a positive move for the company - resulting in increased earnings and cash flow.
[Via: Yahoo]
It should not only allow AT&T to get more customers, but it will also cut their roaming cost. I remember back at least a year ago Cingular “announcing” it will be cutting customers free of their contract for roaming 40% or more of their anytime allowance in three consecutive months with a flag going on your account after the first month. I should know, I was let go by them, too bad since I was using Cellular One when ever I would roam.