Monday, March 21, 2011

Possible Future AT&T Ad Synergies

T-Mobile Online Display Ad Spending
Annual in Millions, 2006-2010
20062007200820092010
$35m$29m$39.3m$37.4m$53.8m
Data provided by Kantar Media, 2011

We are a year away from knowing if the AT&T purchase of T-Mobile USA will be approved by the Department of Justice and the Federal Communications Commission. Assuming the deal does pass muster, there will be all sorts of synergies for the new company: lower backhaul costs in some cases; less overhead; fewer retail stores to support; fewer employees and less advertising than the two firms had been spending.

In T-Mobile USA's case, there is perhaps $54 million that will not be spent after AT&T becomes the new owner. In total, AT&T expects to save about $40 billion.

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