"AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion" -http://www.engadget.com/2011/03/20/atandt-agrees-to-buy-t-mobile-from-deutsche-telekom/ I was glancing at AT&T's balance sheet and its current assets are roughly $20 million, of which $1,437,000 is cash. I also looked at they're income statement. Where on earth this it get the $25 billion in cash to pay T-mobile, of which the remaining $14 to be dispersed as dividends? Could AT&T have applied for a such a huge loan? I'm an accounting major and would like someone to shine some light on this buy out...
UPDATE AT&T has an 18-month commitment for a one-year bank loan to help finance the deal, underwritten by J.P. Morgan for $20 billion. It is the largest financing by the bank for a single deal. AT&T has also committed to pay Deutsche Telekom a $3 billion fee, in addition to handing over some spectrum, if the deal doesn't close. These terms helped AT&T win Deutsche Telekom's support of the transaction, people familiar with the matter said. -http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html
According to Wikipedia they have a total revenue of 124 billion and an income of 19 billion. Basically they have that money back at the end of the year http://en.wikipedia.org/wiki/AT&T
wow, thats crazy man... i can't believe i missed that. On Yahoo Finance the numbers are in millions, but if you read closely at the print above the statement type it reads "in billions"... saving electronic paper by reducing zeros i guess.
