Report: SBC in Talks to Acquire AT&T

According to sources close to the negotiations, SBC Communications is in talks to acquire AT&T in a deal valued at over $15 billion. With AT&T in its pocket, SBC would leapfrog over Verizon to become the largest telephone company in the United States.

The Wall Street Journal reported Thursday that executives from both companies were holding talks in person and over the phone. However, no final decisions have been made, and the discussions could end without a deal.

By purchasing AT&T, SBC would gain a foothold in the corporate market, along with the largest international fiber optic network.

Any deal would likely mean the end of an era for AT&T, which long ago held a monopoly on the telephone market, but now only targets business customers while rivals dominate the industry.

Even if a deal is agreed upon, however, a merger of SBC and AT&T is likely to raise concerns from federal regulators and consumer groups.

SBC was in talks with AT&T previously, along with BellSouth, which shares ownership in Cingular Wireless with SBC. BellSouth, meanwhile, has reportedly been considering deals of its own with AT&T and MCI.