AT&T Puts Halt to T-Mobile Merger

A few years ago, the U.S. Justice Department filed suit to block the merger between AT&T share of the wireless subscription market at 32 percent, while T -mobile 's share was 10 percent. This market had two other major competitors: Verizon with a 34 percent share and Sprint with a 17 percent share. After spending million on merger plans, AT&T decided to call off the deal. The impact on AT&T bottom line was so significant that its CEO saw his pay cut by $2million as a result.

Do you think AT&T should have spent millions on merger plans in the first place? Explain your answer.