A Review On The Acquisition Of AT&T Wireless By Cingular
Cingular Takes AT&T Wireless
On February 17, 2004 an announcement was made. Cingular Wireless is to purchase AT&T Wireless creating the largest wireless carrier in the United States with over 46 million customers and annual revenues of $32 billion.
First a little background on each company. On October 5th, 2000 Cingular was created by combining two of the strongest regional wireless companies in the United States. Atlanta, Washington based Cingular Wireless, a joint venture between SBC Communications (60%) and BellSouth (40%) serves more than 24 million voice and data customers across the United States. Cingular?s annual revenue for 2003 was $14.7 billion and is currently the second largest wireless company in the United States with more than 35,000 employees.
In 1994, AT&T entered the wireless business by acquiring McCaw Communications for $11.5 billion. AT&T spun off its wireless unit to shareholders in 2001, to become a separate publicly traded company thereby increasing its ability to raise capital. AT&T Wireless, based in Redmond, Oregon, is currently the 3rd largest wireless provider with 31,000 employees, 21 million customers and annual revenue in 2003 of $15.7 billion.
AT&T Wireless and Cingular have worked together in the past. In 2002 the
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