Analysis of the AT&T/T-Mobile Deal

By now, most of you have heard about AT&T's buyout offer of Deutsche Telekom T-Mobile. The deal, totaling $39/$40 billion ($25 billion in cash and about $15 billion in stock, or 8% of AT&T stock) would add nearly 40 million wireless subscribers to AT&T for total of around 129 million, vaulting it past Verizon Wireless' 102 million. The combined company would serve about 43 percent of U.S. cellphones.