AT&T will have to pay $4 billion for hanging up on a $39 billion bid to buy T-Mobile. The decision to drop the purchase of the wireless provider comes after the Justice Department opposed the merger – saying it would raise prices, give customers fewer choices and reduce innovation. The takeover would have created the biggest cellphone service provider. AT&T wanted T-Mobile’s cellular airwaves to ease the strain on its system. The company decided not to challenge the government. AT&T will pay the big breakup fee to T-Mobile’s owner – Deutsche Telekom.
A Saudi Prince has bought a $300 million stake in Twitter. Prince Alwaleed bin Talal runs a large investment firm that includes stakes in Citigroup, Apple, News Corp. and Walt Disney. Alwaleed says the investment represents an interest in investing “in promising, high-growth businesses with a global impact.” The social networking site has played a key role in the Arab Spring uprisings, connecting protesters and relaying on-the-ground developments.
Good news for Apple is a blow for Google. The International trade commission has ruled that some HTC smartphones using Android software violate an Apple patent. Because of this HTC will have to stop importing some smartphones. The ruling could force changes in some Android phones.
Piracy crackdown! A New York man has been sentenced to a year in federal prison for illegally uploading and distributing a copy of “X-Men Origins: Wolverine” before the movie’s premiere. Gilberto Sanchez, 49, was sentenced in a federal court in Los Angeles. Prosecutors say Sanchez admitted uploading a “workprint” copy of the 2009 film then publicizing the upload on two websites.
Richard Davies Business Correspondent ABC NEWS Radio twitter.com/daviesabc