At first you don’t succeed, try and try again. AT&T tried to acquire…forgive me…I meant partner with Verizon, but that failed. Now, they’re taking over…oops…partnering with another company.
AT&T announced they are purchasing Leap Wireless, the carrier for Cricket Communications, for 1.2 billion dollars. Leap is the fifth biggest cell phone company in America, thanks to Metro PCS getting taken over by T-Mobile. The only reason you’re not seeing AT&T and Verizon is because the US Department of Justice stopped it, due to anti-trust concerns. But despite being the 5th biggest phone company, Leap is struggling. As of yesterday, their shares were only $7.98 on the NASDAQ. Plus, some say this acquisition will make things even between the big four (AT&T, Verizon, Sprint and T-Mobile).
I have mixed feelings about this. There must be a pretty big gap between the big four and Leap Wireless, I mean between the big 4 and Leap, being the fifth. I’m not that much into corporate mergers and take overs, but I’m kind of feeling this one. If a company needs help, then this could be what it takes to get Leap in the running. I’d rather see it bought out then to see jobs lost. My only concern is with other moderate phone companies. Will they thrive, or they will be bought out too?