AT&T has just announced that they've come to agreement with Deutsche Telekom to purchase T-Mobile USA for $39 billion in cash and stock. Here in the USA, AT&T and T-Mobile are the two GSM wireless carriers, and combined, they currently serve 130 million customers. The deal still needs to be approved by the various regulatory agencies, and the companies have said they expect it to take just about a year before all is said and done. We're sure it'll al go smoothly, and we'll soon be left with just three major carriers in the US. Full press release after the break.
Sirius has finally completed their acquisition of XM. The company will now be called Sirius XM Radio (duh) and will consist of 18.5 million subscribers. They will have more exclusive programming in addition to Howard, Oprah, and Martha. Users have the option of maintaining their current packages, but it remains to be seen if SXM can get new $13.00 subscriptions and radio sales with the economy being the way it is. We think consumers may opt for a couple more gallons of gas instead.
Read More | Mobility Today
Acer will be taking over Gateway in a $710 million deal. This move will make that company our planet’s third largest producer of PCs (hp and Dell being the first two.) Because Acer is mostly sold in the European and Asian markets and Gateway is predominate in the U.S., they are hoping that the merger will be able to ship in excess of 20 million units a year. The takeover should be completed by this December. Let us have a few moments of silence then for the little company-that-could and its humble cow splotches that became greedy, greedy, greedy.
Read More | BBC
Movie Gallery, the parent company for brick-and-mortar game retailer/renter (and one of the few remaining chain competitors to GameStop/EB) received an extension on its $900 million restructuring loan as it continues to struggle in an increasingly difficult market. Movie Gallery also owns Hollywood Video and and eponymous stores. CEO Joe Malugen said, “Despite the challenging market conditions for Movie Gallery and the entire rental industry, we are continuing to work with our lenders and our outside advisors to help address the Company’s current financial situation. We plan to continue to operate the Company without interruption as we work through this challenging period.”
So clearly the word of the day is “challenging” but the company seems to be angling toward an acquisition or merger to overcome those challenges. So far they have had to close stores and reduce staff to try and meet financial obligations, and this new extension has given them until August 27th before the loan is considered defaulted.
XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. have just announced that they have come to an agreement to merge. Monopoly outcries are likely a sure bet, as the deal would result in the consolidation of the two two companies in the subscription-only satellite radio business, so we can expect federal regulators to be looking at this deal under the microscope long and hard before it’s hopeful approval. The companies have also announced that Mel Karmazin, Sirius CEO, would become CEO of the newly formed company, while Gary Parson, XM chairman, would remain in the same position.
On Friday, the FCC finally approved the merger between BellSouth and the company formerly known as SBC, now known as AT&T. As soon as AT&T got word of the green light, they released information on how the merger will affect both companies following the merger. Long story short, Cingular is going to be rebranded as AT&T early this year. While it would seem the obvious choice, AT&T Wireless will likely not be the name given to the service. Customer will be able to keep their current phones and plans, and if you live in what is currently an AT&T landline service area, you may even get bundled discounts out of the deal.
The Gear Live report on a possible Freescale buyout has just been confirmed. Freescale Semiconductor Inc., designer and manufacturer of embedded processors and peripherals, will be purchased by a consortium of private investment groups led by The Blackstone Group, and including The Carlyle Group, Permira Funds and Texas Pacific Group. At a $17.6 Million bottom line, this merger more than triples the value of the AMD-ATI merger that has been such huge corporate news thus far this year. The terms of the merger are a purchase price of $40 per share in cash, representing a premium of approximately 36% over Freescale’s average closing share price during the 30 trading days through September 8th, 2006.
Much like the AMD-ATI merger, the merger was approved unanimously by the board of directors, but still awaits shareholder and U.S. antitrust approvals. Freescale also has the option to shop around for a better offer from another party, but I’m guessing a 36% margin is going to be hard to beat.
Read More | Freescale
AMD has confirmed this week that the merger with ATI has been approved by Canadian antitrust laws and regulations. The merger has been in the works since earlier this year, but the process was on hold pending this decision by the Canadian government. US and German approvals have already been satisfied, so there is just one more step to complete the process, an ATI shareholder’s meeting scheduled for October 13th of this year in Toronto.
Executive at AMD are very pleased with this progress and expect the same result from the upcoming shareholders meeting. Both companies have begun working on planning the integration process and even potential programs for the combined organization. These unified programs should start by 2008 according to both AMD and ATI.
Read More | IT News Online
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