A number of media outlets have reported that AT&T is close to buying out BellSouth Corp. for close to $65 billion.
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The deal would considerably increase the reach of AT&T, already the country's leading telecommunications company by the number of customers served.
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The merger of the two companies would result in 70 million local-line phone customers and close to 10 million broadband subscribers.
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This isn’t a completely new partnership as AT&T and BellSouth are already working together as they jointly own the Cingular Wireless LLC. That specific business has grown fast since it was formed by the merger of a number of regional wireless carriers, and there have been undercurrents that AT&T really wanted complete control over that aspect of the business.
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Evidently the Cingular brand is going to be phased out in deference to the AT&T brand. The name will not be new as it will be called: AT&T Wireless Inc., which being a spin-off of AT&T, was acquired by Cingular in October of 2004.
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AT&T will pay approximately $37 a share, about an 18 percent premium measured by Friday’s close. BellSouth shares have already gone up 16 percent in 2006.
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