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WSJ: FCC will approve AT&T's withdrawal of T-Mobile deal

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The Wall Street Journal is reporting that the FCC is prepared to allow AT&T to withdraw its proposed $39 billion acquisition of T-Mobile USA

Julius Genachowski
Julius Genachowski

After some back-and-forth in the prior days about whether the FCC would let the AT&T quietly undo its massive, $39 billion proposal to buy T-Mobile USA from Deutsche Telekom, WSJ is reporting this afternoon that the FCC's commissioners are indeed signaling that they'll let the matter go. Why is that significant? For one thing, it clears out the looming hearing that could further hurt AT&T's chances of putting a deal together, and — as AT&T has stated — it helps them concentrate on dealing with the upcoming Department of Justice proceedings related to the matter. The carrier has signaled that it could still look at other options for getting a deal done, and the latest rumor has it discussing a big divestiture to Leap Wireless. Needless to say, this isn't over.