AT&T brought a thinly spread international business to the table. While AT&T
dominated the services business, with clients like Citigroup and Barnes & Noble,
SBC was less dependent on the consumer market, where it faced mounting
competition from cable-TV companies such as Comcast.
Some analysts commented that
the deal would reduce SBC's growth prospects since the market for big business
services was shrinking by 10% a year, and profit margins were falling.
They opined that SBC was better off, focusing on the
integration of the former AT&T Wireless business into Cingular. Would the merger
create value of shareholders? Where the synergies being exaggerated?
AT&T
Early History
Following the invention of the telephone by Alexander Graham Bell in 1876, Bell
Telephone was established in 1877 and New England Telephone in 1878.
The two companies were consolidated as National Bell Telephone in 1879. In 1882,
Bell company acquired Western Electric, the leading US electrical equipment
manufacturer. Bell's patents expired in 1890. As independent phone companies
entered the market, Bell struggled to compete. Bell changed its name to American
Telephone and Telegraph (AT&T) in 1899.
J.P.Morgan and his associates gained control of AT&T and installed Theodore Vail
as president in 1907. AT&T won control of Western Union, Western Electric's
parent company in 1909. to meet regulatory requirements, AT&T agreed to sell its
stake in Western Union and not to buy independent phone companies without
approval. AT&T also granted independent access to its networks.....
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class discussion. It is not intended to illustrate either effective or
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