ATT to acquire T-Mobile USA to become USA largest carrier

Ever since Deutsche Telekom announced its plans to sell T-Mobile USA, we were just waiting to hear who would reach to their pockets for a large chunk of change. Well, wonder no more, as on Sunday both companies announced the deal is a fact.

AT&T will pay Deutsche Telekom the "modest" $39 billion dollars in cash and stocks to acquire T-Mobile USA. The deal is planned to end in 12 months time, so don't expect any changes coming soon.

Out of the $39 billion coming out of AT&T pocket, only $25 billion will be in cash. The remaining $14 billion will be paid in AT&T stocks. As part of the deal, Deutsche Telekom will have 8% equity stake in AT&T. The merger will result in a combined user base of 130 million customers, which would shoot AT&T to the top spot in the US snatching the lead from Verizon.