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AT&T Stops T-Mobile Merger Bid With the FCC
An anonymous reader writes Relationships are tough and it looks like AT&T and T-Mobile's has stopped before it even started. From the article: 'AT&T and T-Mobile have announced that they will remove their pending applications to the FCC for their merger bid. This comes after statements from the FCC chairman 'strongly opposing the merger'. In doing so, AT&T has agreed to pay T-Mobile 4 Billion US dollars to cover accounting and other costs that this may have caused. While AT&T would still like to merge, it is unlikely that they will gain antitrust clearance from the Department of Justice. It's the antitrust aspect that this is mostly about, in that AT&T has said that they want this move to free up the FCC to consider all options, and focus both AT&T and T-Mobile on the pending antitrust.'"
The New York Times had an even more informative article on this with the most likely reason -- if they continue with the FCC application, most of the records they filed for it become public, which the DOJ can then turn around and use against them in the antitrust suit. Quite likely, the horrific reality of all of AT&T's patently-false claims that were debunked months ago are spelled out in those filings and they don't want it getting out.
The attempt to withdraw the FCC application is essentially an admission that they know the deal has less than zero chance. Another interesting point in the NYT is that the FCC is under no obligation to honor their request. They can deny it and force it to judicial review, or grant the withdrawal with prejudice (meaning AT&T cannot refile the application later, which would absolutely kill the deal).