Mergers & Acquisitions
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Short Answer to your question:
1) AT&T is going to pay $25B in cash (cash down on their BS) and issue $14B of stock to existing shareholders, DT & public stub (equity up on their BS).
Actual impact to BS will be according to Purchase Price Allocation, covered in our Intermediate Merger Modeling class. Impossible to summarize here.
Beyond Goodwill issues, you have FMV allocation will be extensive due to hard assets.
2) Correct, new stock issuance to existing shareholders. Won't go through public markets. DT doesn't own 100% of T-Mobile, which is also publicly traded. So 8% represents the DT % of T-Mobile on $14B.
3) Take our valuation class. AT&T isn't overpaying. But this will be a disaster. Read More