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AT&T buys Dobson Communications for $2.8 Billion

By: , IntoMobile
Monday, July 2nd, 2007 at 8:00 PM

AT&T must have been anticipating the Apple 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]

About The Author

Will Park

Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...

  • PineRoot

    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.