Coalition of States Sue to Block Merger of T-Mobile & Sprint
T-Mobile US Inc. and Sprint Corp are testifying before court as a coalition of 13 states (including California and New York) and the District of Columbia are suing to block the $26 billion merger between the two telecom giants. Federal antitrust and telecom officials, had approved of the deal earlier in 2019, believing that the two carriers were fit to merge. The coalition claims that putting together two wireless companies with a record of aggressive discounts would make cellphone plans more expensive than they would be if the two rivals were kept apart.1
Intel Acquires Habana Labs
Intel Corp. has expanded its scope within the artificial-intelligence (AI) space through the recent acquisition of Israeli-based AI chip-making startup, Habana Labs. Intel believes the $2 billion deal will help strengthen the company’s lineup of AI chips that are used within its data centers. These data centers use AI algorithms to analyze and sort large amounts of information in which can help identify customer trends.2
5-G Technology Rolled Out
The four major U.S. telecom giants (AT&T, Sprint, T-Mobile and Verizon) have begun rolling out their respective 5G networks. It is projected that roughly $1 trillion will be spent globally on 5G technology between 2019 and 2025.3 4
Government Allowing Private Companies to Share US Navy Radio Air Space
The federal government is now allowing companies to share air space with the U.S. Navy. Telephone, cable and technology companies have been approved the use of the Citizens Broadband Radio Service (CBRS), an array of radio frequencies, to offer commercial wireless service. Any company can use CBRS if registered, meaning no payment is required. In exchange however, the company must give the U.S. Navy and companies willing to purchase a license priority.5
Huawei Has Record Revenues for 2019
Huawei Technologies Co. has finished a rather tricky 2019 with a record $122 billion in revenue. This continued rise in profit showcases the tech giant’s global dominance despite its products being off-limits to U.S. telecom operators. Huawei shipped roughly 240 million smartphones in 2019, a 17% increase over 2018 shipments. The company is continuing to invest in other devices, including PCs, tablets and wearable devices.6
FCC Splits Spectrum Block to Allocate Additional MHz to Wi-Fi
The Federal Communications Commission (FCC) voted unanimously (5-0) in favor of a plan to split a spectrum block originally set aside for auto safety to accommodate the increasingly growing number of wireless devices. The FCC plans to now allocate 45 MHz for Wi-Fi use while the remaining 30 MHz will continually be used for auto safety. According to FCC Chairman Ajit Pai, the importance of Wi-Fi is likely to double by 2023 to more than $1 trillion.7 8
Largest Transactions Closed
- Enterprise Security Assets of Symantec Corporation
- Broadcom, Inc.
- Versum Materials, Inc.
- MERCK Kommanditgesellschaft auf Aktein
- Assurance IQ, Inc.
- Prudential Financials, Inc.
- Pivotal Software, Inc.
- VMware, Inc.
- Cox Media Group
- Apollo Global Management
- Presidio, Inc.
- BC Partners
- Gannett Co., Inc.
- New Media Investment Group Inc.
- Carbon Black, Inc.
- VMware, Inc.
- IM Flash Technologies, LLC
- Micron Technology, Inc.
- Carbonite, Inc.
- Open Text Corporation
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes