AT&T Just Made a Smart $23 Billion Bet

Telecom giant AT&T (NYSE: T) struck a deal with EchoStar on Tuesday to acquire wireless spectrum licenses that cover nearly ever market across the U.S. The company will pay $23 billion for 30 MHz of mid-band spectrum and 20 MHz of low-band spectrum. AT&T plans to deploy these licenses as soon as possible, bolstering its 5G network. The transaction is expected to close in mid-2026.AT&T will finance this hefty deal with a combination of cash on hand and additional borrowings. The company's net-debt-to-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio will increase as a result, but AT&T expects to be back at its target level within about three years. This deal won't impact AT&T's capital return plans, which include $20 billion for share repurchases through 2027.Why is AT&T spending so much on additional spectrum? It's all about the company's convergence strategy.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool