T-Mobile saving cash for AT&T merger

T-Mobile saving cash for AT&T merger
A spokesperson for T-Mobile’s parent company Deutsche Telekom has admitted to The Wall Street Journal that the company has been setting aside cash in order to retain key executives if the AT&T merger goes through.

Apparently, T-Mobile has already recorded $64 million over the past two quarters for "merger-related" employee costs, and now we know exactly what that means. Deutsche Telekom has said that money will be used specifically to retain "top employees" in the case that the proposed merger does go through.

Of course, we still have no idea when that may be happening. The US government is still investigating the proposal, and while there has been a lot of vocal opposition to the plan, everything has been fairly quiet recently. As of right now, the best guess is that a decision will be made by the middle of 2012.

source: WSJ via BGR



1. rsiders

Posts: 1934; Member since: Nov 17, 2011

Don't do it T-Mobile. We (customers) have appreciated your great plans and great customer service. Keep things the way they are;competition based. Please...

3. JGuinan007

Posts: 699; Member since: May 19, 2011

If they have such great plans and customer service why are they for sale why have they been lossing customers is it they have a poor network and cust can't get service in alot of areas?

8. elandrumiii

Posts: 109; Member since: Mar 20, 2010

Because AT&T wants to get rid of them. They dont need them they are spectrum heavy. Just like the ATT/Cingular merger customers ran. DT has been trying to unload TMO for years. they want out of the American market. TMO has been very profitable for them for years they are just cheap and dont want to spend the money to run TMO USA

14. Gotchafone

Posts: 23; Member since: Nov 15, 2011

T-Mobile has been losing customers like crazy ever since the merger plans were made public. Their employees have been hating the merger as well, because AT&T will probably deem most of them redundant.

2. OldHAG

Posts: 11; Member since: Nov 21, 2011

wow can't wait to see how great the iphone will run on the newly improve network

4. vvelez5

Posts: 623; Member since: Jan 29, 2011

The deal will go through.

5. webOSdev2.0

Posts: 31; Member since: Jan 17, 2011

Please go through


Posts: 650; Member since: Nov 20, 2011

I hope the deal doesnt go through. i love my tmobile the way it is. i left att a while back and it was the best decision i ever made to leave them for tmobile. might not have the best network in certain locations but cant beat their pricing, customer service, and they seem to get the coolest phones in my opinion

7. xiobnb

Posts: 74; Member since: Nov 11, 2011

plz do not go thru att sucks when i use it

13. ZayZay

Posts: 571; Member since: Feb 26, 2011

Maybe it's you that sucks... Ever think about that? jk

9. elandrumiii

Posts: 109; Member since: Mar 20, 2010

TMO customers will be bent over just like customers on the losing end of the first Cingular/ATT merger. ATT has plainly said they want to kill the TMO 3G/4G network first so TMOcustomers will be forced to leave their plans in favor of the higer cost ATT plans with no form of unlimited data unless you find an ATT wifi hotspot will driving.

10. ardent1

Posts: 2000; Member since: Apr 16, 2011

German GAAP allows for the setting aside of reserves. Setting up reserves is not allowed under US GAAP because FASB wants those charges (unusally an impairment charge, or extraordinary item) to flow through the income statement, which impacts the earnings and then is reconciled with the equity accounts. Under US GAAP, non-operations related gains and losses are capture under FASB 130 or comprehensive income. As a general comment, what this is means is DT is either managing its earnings or setting side funds today when the going is good for a charge at a later date. They are telling investors that in the event the T-Mobile-ATT deal is consumated, DT is afraid a number of their executives will jump ship (i.e. say adios to DT and hello to ATT) such that DT feels it will need to prepare golden handcuffs, i.e. the cash incentive so these kep employees will stay with their generous and benevolent DT empire. At the current run-rate of $64MM for the past two quarters, DT believes it may pay out as much as $128MM at time of said merger. Rather than record the charge when realized at the time of the actual merger, DT is allowed under German GAAP to set up this reserve today. If the merger doesn't go through, then DT has the ability to release these reserves and improve earnings at some future date in time.

11. snowgator

Posts: 3621; Member since: Jan 19, 2011

Interesting read, Ardent. Thanks!!

12. remixfa

Posts: 14605; Member since: Dec 19, 2008

nice introspective the other side of the coin is what they arent saying. They already sent us emails months ago detailing all of our severence packages. I bet that a lot of that money is set aside for those severences and the eventual unemployment claims that employees will automatically win when they get those severences. \"retain top employees\".. riiight.....

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