AT&T Inc. (NYSE: T) and T-Mobile USA may unite in a joint venture if ATT&T's $39 bid for T-Mobile doesn't get approval in court, according to a new report.
The Wall Street Journal is reporting that AT&T and Deutsche Telekom, the parent company of T-Mobile USA, have held preliminary discussions about forming a joint venture should the merger bid be dashed in court. Multiple sources were cited as confirming the report.
AT&T wants to pool its resources with those of T-Mobile USA to make one stronger competitor with more infrastructure advantage, among others advantages. The Department of Justice is suing to block the $39 billion bid by AT&T for T-Mobile. Last week, AT&T withdrew its application for the acquisition of T-Mobile USA from the FCC.
By joining through a joint venture, the companies could reap shared benefits without requiring the same federal approval that a merger requires.
AT&T's stock closed up 3.28 percent, or 45 cents per share, to $28.98 on the news on Wednesday.