Merger: AT&T and Cingular

Paper Summary:

This paper discusses an important merger involving two telecommunications Fortune 500 companies, AT&T and Cingular. The paper points out that, at the end of 2006, the merger between AT&T and Cingular was finalized, after receiving prior approval from the Federal Communications Commission. This merger makes Cingular the nation's biggest cell phone company. According to both companies, the merger will let them offer better service and put them in a better position to build more advanced data networks. The paper uses tables and charts to make its point. Finally, it concludes that an analysis of the financial statements of AT&T and Cingular indicate that the new company will be strong and positive within the telecommunications industry.

Outline:
Introduction
Overview of the Merger
Analysis
Conclusion

From the Paper:

"Before conducting any merger or acquisition, companies must perform due diligence, or the process of independently investigating a company, its management team and its prospects for success by an investor before funding is provided. It appears that Cingular conducted due diligence before acquiring AT&T, because a comparison of their financial statements indicates that AT&T was operating at a very profitable pace. For example, the financial statements of AT&T appear to be more lucrative than those below of Cingular. There appears to be only a small increase in revenue in the statements of Cingular as compared to the statements of AT&T. Cingular also appears to have spent more money than AT&T on miscellaneous operating expenses. Even though the operating expenses have drawn away revenue at Cingular, the operating costs are not at such an unreasonable cost that this would be expected."

Sample of Sources Used:

• AT&T. (2006). Cingular Wireless Reports Fourth Quarter 2006 Results. Retrieved December 2, 2007, from http://cingular.mediaroom.com.
• CNN. (2007). Cingular Nabs AT&T Wireless for $14b. Retrieved December 3, 2007 from http://money.cnn.com/2004/02/17/technology/cingular_att/.
• Leechor, C. (2001). Reviving the Market for Corporate Control. Report from the World Bank Group.
• Marchetti, N. (2006). Cingular yet again becomes AT&T. Retrieved November 12, 2007, from http://news.digitaltrends.com/news/story/10286/cingular_yet_again_becomes_att.
• Sprint. (2007). Sprint Nextel: Aiming to be No. 1 in Customer Experience. Retrieved December 2, 2007, from http://www.sprint.com/companyinfo/history/.

More papers on Merger: AT&T and Cingular:

• Comparison Essay # 4316 : "Introduction and Comparison between AT&T and MCI"
• Analytical Essay # 126162 : "Telecommunications Industry and Wireless Sector"
• Case Study # 114837 : "Lester Electronics Inc. (LEI)"

APA Citation:

MLA Citation: