6-10-14
Why should you root for the government to approve the $32 billion marriage of wireless companies Sprint and T-Mobile? Because history shows, when a merger like this takes place, ad spending increases. Ad Age digs out the data showing the 2006 AT&T $86 billion acquisition of BellSouth resulted in a 26 percent increase in ad spending (to $3.3 billion). When Sprint purchased Nextel there was also an uptick. Ad Age says T-Mobile and Sprint will likely boost spending to create awareness for the combined -- and possibly rebranded -- company. And that may also result in rivals AT&T and Verizon Wireless increasing their spend to keep up with the competition.
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