Ma Bell Strikes Back

Released today at 4:00 PM:

"AT&T Inc. said Sunday it will acquire smaller rival BellSouth Corp. for $67 billion in stock, in an apparent bid for total control of their growing joint venture, Cingular Wireless LLC.

AT&T was formed by San Antonio-based SBC's acquisition of AT&T Corp. in November. The deal added a substantial national reach to the former Southwestern Bell's local business, which is concentrated in 13 states, including Texas, California, and the Midwest.

BellSouth is the dominant local telephone provider in nine Southeastern states.

The merged company would have 70 million local-line phone customers and nearly 10 million broadband subscribers."

As a BellSouth DSL customer I'm not really very thrilled about this. AT&T has never worked very well for me or anyone I've ever heard as a custoemr or former customer.

Considering that this deal now will create a network with this much market-share part of me is also hoping this buyout/merger does not pass antitrust muster. The dollars on this deal totaling $67 billion is 50% larger that the Bank of America/Fleet Merger which almost didn't pass antitrust review.

In one company, you now have recombined BellSouth, SW Bell, Pacific Bell, and Ameritech along with Cingular,

In another, you have Bell Atlantic, MCI, Nynex, joining with and assuming the name of Verizon.

Only Qwest remains as a Baby Bell.

Any legal minds want to impart why this might actually go through?