Jan 28, 2005 : SBC in Acquisition Talks with AT&T
📅 - Internet service and Web hosting provider SBC Communications (sbc.com) is in talks to acquire AT&T in a deal worth more than $15 billion, according to several media reports.
The recent merger talks come on the heels of a difficult year for AT&T, with the company cutting 14,000 jobs and seeing its annual revenue drop 11.6 percent.
SBC's interest in AT&T reportedly stems from the company's international network and strong base of corporate clients, which are particularly valuable given the fact that large corporations are generally reluctant to switch service providers. Analysts say that in order for a company like SBC to match AT&T's global network, which was built over several decades, and compete for such larger corporate customers, SBC would have to invest billions of dollars.
AT&T, analysts say, would likely be interested in the deal, but investors in SBC may see the move as a bit premature, given that more competition may yet weaken AT&T further.
The talks, according to reports, are extremely sensitive and could potentially collapse.
Both companies have declined media requests for comment.
The recent merger talks come on the heels of a difficult year for AT&T, with the company cutting 14,000 jobs and seeing its annual revenue drop 11.6 percent.
SBC's interest in AT&T reportedly stems from the company's international network and strong base of corporate clients, which are particularly valuable given the fact that large corporations are generally reluctant to switch service providers. Analysts say that in order for a company like SBC to match AT&T's global network, which was built over several decades, and compete for such larger corporate customers, SBC would have to invest billions of dollars.
AT&T, analysts say, would likely be interested in the deal, but investors in SBC may see the move as a bit premature, given that more competition may yet weaken AT&T further.
The talks, according to reports, are extremely sensitive and could potentially collapse.
Both companies have declined media requests for comment.
Reads: 1463 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/sbc012805.cfm
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