Mergers and acquisitions seem to spice things up in any industry.  They can either make or break the participants of the deal, so these kind of things are carefully planned and they greatly affect the industry, especially the consumers.

2011 is the year of mergers and acquisitions especially in the mobile industry, some deals going smoother than others.  This year there are two ongoing acquisitions that could shatter the balance in the industry, and this is probably why both acquisitions haven’t quite pushed through yet.

AT&T – T-Mobile

Sometime in March of this year, rumors surfaced that AT&T wants to acquire T-Mobile in order to bring better service and to cope with the growing number of mobile users.  This would actually be great if you believe the two companies will work together to bring you better service.  But if you think the acquisition would result in redundancy, ultimately cutting down on workers, this deal results in an anti-competitive monopoly.

Since the formal announcement of AT&T’s intent, the carrier has faced a number of hindrances.  The majority of the reactions towards the deal were quite negative, and in April, the  Federal Communication Commission started investigating the potential acquisition.  Though it looks as though the future of the deal seems bleak, AT&T still managed to acquire high profile supporters such as Microsoft, RIM, Qualcomm, Facebook, Yahoo, Oracle, along with 10 major venture capital firms backing the deal.

During the first week of November, Sprint and C Spire Wireless were allowed to sue AT&T for it’s plan to acquire T-Mobile, and before the month ended, FCC Chairman Julius Genachowski slapped AT&T with the biggest obstruction to date, as he planned to refer the deal for an administrative hearing before the judge.  This was the last draw as AT&T pulled their application from the FCC with the aim to concentrate on the case filed by the Department of Justice.

And now, just a few weeks before the year ends, the deal might still have a positive outcome, as a federal judge agreed to put on hold a government challenge to the biggest merger this year.

“We are actively considering whether and how to revise our current transaction to achieve the necessary regulatory approvals,” Dallas-based AT&T said in an e-mailed statement.
But this doesn’t change analysts opinion that the deal is dead.  The deal still has to face the FCC and if doesn’t get its approval, AT&T would have gone through all the trouble for nothing.

“By agreeing to stay the proceedings, AT&T avoided a potential bombshell — if the Judge had decided to dismiss the case,” said Allen Grunes, a lawyer for Dish Network Corp., which opposes the transaction. “This way, AT&T buys itself 30 days to decide whether to push forward with the trial, to try to settle, or to bow out gracefully.”

Google-Motorola Mobility

Back in August, Google announced it plans to acquire Motorola Mobility.  This was viewed as more of a patent buy to boost Google’s defenses against Apple, Oracle and Microsoft. The announcement wasn’t well received, as OEM partners feel they’re in grave danger of being snubbed for Motorola when it comes to first access to Google products and Android updates.  Such favoritism was scrutinized and the acquisition questioned as to how this would work out for OEM partners.  Samsung and HTC decided it wouldn’t hurt to partner up with other OS providers, facing coercion from Microsoft to build Windows Phone-based devices.  Though critiqued, Motorola shareholders approved of the deal and all seemed well, until Lemko Corp. filed a case against Motorola for allegedly stealing their source code.  The latest update regarding the deal is that the European Commission postponed the approval of the deal, requesting more time to study the acquisition.

According to some legal experts, what the European Commission did was quite common.  The original date for the ruling was supposed to be on January 10, 2012 but the European Commission stated that they would just publish a new deadline date.

“The European Commission has asked for more information, which is routine, while they review our Motorola Mobility acquisition,” a Google spokeswoman said.  “We’re confident the commission will conclude that this acquisition is good for competition and we’ll be working closely and co-operatively with them as they continue their review.”