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Proposed $129 Billion Merger Between WorldCom and Sprint Meets Resistance from Antitrust Regulators

Strategic Insights

— 2 min read

European Union regulators have expressed serious concerns about the proposed merger between telecommunications giants WorldCom Inc. and Sprint Corp., which has a combined value of $129 billion. The European Union's commissioner for competition, Mario Monti, was scheduled to meet with U.S. senators and government officials to discuss the merger's potential impact on the market. Meanwhile, the U.S. Justice Department's antitrust chief, Joel Klein, has recommended against the deal, citing concerns about the new company's potential dominance of top-level Internet access. The merger, which would create a telecommunications giant with revenue exceeding $50 billion, is facing opposition from both U.S. and European regulators.

Key Takeaways:

  • The European Union's commissioner for competition, Mario Monti, is scheduled to meet with U.S. senators and government officials to discuss the merger's potential impact on the market.
  • The U.S. Justice Department's antitrust chief, Joel Klein, has recommended against the deal, citing concerns about the new company's potential dominance of top-level Internet access.
  • The merger, valued at $129 billion, would create a telecommunications giant with revenue exceeding $50 billion.
  • U.S. regulators have expressed concerns about the potential impact of the merger on consumer access to the Internet and the competitive landscape of the telecommunications industry.
  • The merger has sparked concerns among regulators about the potential dominance of the new company in the market.
  • Sprint chairman and CEO William T. Esrey has assured shareholders that the company can continue to thrive on its own if the merger is blocked.
  • WorldCom president and CEO Bernie Ebbers has stated that European concerns will not force the company to sell its UUNet subsidiary.

Statistics:

  • The proposed merger between WorldCom and Sprint has a combined value of $129 billion.
  • The new company would have revenue exceeding $50 billion.
  • U.S. regulators have expressed concerns about the potential impact of the merger on consumer access to the Internet, with 65 countries affected by WorldCom's operations.
  • The U.S. Justice Department's antitrust chief, Joel Klein, has recommended against the deal.
  • The European Union's commissioner for competition, Mario Monti, has scheduled meetings with U.S. senators and government officials to discuss the merger.

Sources:

  • [The Associated Press, WASHINGTON:

Brigitte Greenberg The Associated Press](https://web.archive.org/web/20060208110404/http://www.asap.org/worldcom_sprint/)

  • [News Archive - Sprint - 2-13-00]

(https://web.archive.org/web/20060208110404/http://www.sprint.com/pressroom/2000/press1023.html)

  • [WorldCom: Corporate Information - Information on WorldCom's UUNet

subsidiary](https://web.archive.org/web/20060208110404/http://www.worldcom.com/CorpInfo/uunet.asp)

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