AT&T Buys T-Mobile (T, VZ)

At&t T has entered an agreement to purchase T-Mobile from Deutsche Telekom for approximately $39 billion. In this agreement, Deutsche Telekom will place an executive on AT&T's board and also gain 8% ownership stake in AT&T.

AT&T has been under fire to match Verizon Wireless' VZ large network of about 100 million subscribers. Currently AT&T holds about 95 millions subscriptions. By acquiring T-Mobile, AT&T gains access to the company's 35 million subscribers, giving AT&T a leg up over Verizon.

According to a press release from AT&T, “This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations. We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers' current demands, build for the future and help achieve the President's goals for a high-speed, wirelessly connected America.”