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AT&T and T-Mobile deal: More mergers ahead?

AT&T-T-Mobile deal is lifting spirits and may inspire other mergers and acquisitions.

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The AT&T Michigan headquarters is shown in Detroit is shown in January 2007. AT&T announced Sunday that it will buy T-Mobile for $39 billion. Will such a massive deal trigger other mergers and acquisitions?

Paul Sancya / AP / File

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After coming to a halt when the economy tanked in 2008, mergers and acquisitions are alive again. The $39 billion AT&T-T-Mobile deal announced Sunday made it official.

“We’ve seen M&A a upticking over the past three quarters,” says John Bender, a consultant who oversaw the $19 billion HP-Compaq deal in 2002. “The AT&T-T-Mobile deal is a good bellwether for optimism.”

The deal is the largest since the beginning of the financial crisis. It will likely inspire more huge deals, says Charles Kane, an adjunct professor of international finance at the Sloan School of Management at the Massachusetts Institute of Technology in Cambridge, Mass. “I think this will trigger more M&A in the [telecommunications] space. [Competitors] may try to expand their business to answer the first shot.”

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