A twin pair of rumors hit the street yesterday, both of which seem to be living proof of the phrase “There’s a sucker born every minute”. First, there was this insane notion that AT&T (NYSE:T, news, filings) might buy Vonage (NYSE:VG, news, filings). Right, that’s why they spent years choking off their own CallVantage VoIP product – so they could attract regulatory scrutiny by buying another one, cannibalize their own revenue with it, and further piss off the rather significant percentage of Vonage customers who are Vonage customers precisely because they don’t want to be AT&T customers. Yeesh…
The second rumor is a bit more believable, that AT&T might buy Leap Wireless (NASDAQ:LEAP, news, filings). I suppose that’s theoretically possible, but it still doesn’t make any sense. Leap is a CDMA shop, AT&T is GSM – they don’t fix that incompatability until LTE is here and AT&T has enough on its hands upgrading to LTE at this point. Further, doesn’t everyone get the feeling that the FCC or DOJ or someone out there in the Obama administration is just itching to slap down a mega-merger and remind Ma Bell who is in charge? For AT&T to try any substantial merger now would be just asking for trouble, and they’re smart enough to know that.
The market sure does seem jumpy at the moment, like it really wants something interesting to happen. Otherwise these rumors wouldn’t spread.
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