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]