SBC buy AT&T

by brian_turner

US phone company SBC Communications has agreed buy out of telecoms giant AT&T, using $15 billion in stock options and a $1 billion sweetener to AT&T shareholders.

The deal has yet to face approval by AT&T shareholders, and regulating bodies could take 12-18 months to approve the deal, presuming there are no immediate objections.

Both companies together suggested that working together they could make efficiency savings of around $2 billion a year from 2008, due to combined infrastructure.

Why this important: Finance market news aside, it’s worth noting that this effectively means that SBC and AT&T will be able to provide an extensive and well established ISP network across the US.

The reason why that is big news is that as I covered in November last year in Internet TV & search, SBC already have major working relationships with Yahoo! and Microsoft for the provision of major next generation internet services.

For one, SBC will be using Microsoft technology to deliver internet broadcasting – and Yahoo! has contracted them to provide various Yahoo! services to mobile and broadband customers.

The future infrastructure of internet TV is being duly consolidated.

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Posted in: Business