AT&T Wireless Market Cap Hits $68 Billion
In the largest business initial public offering in U.S. history, AT&T today spun off its wireless group, raising $10.6 billion in the first day alone. The AT&T Wireless Group, created in December, comprises the carrier's mobile voice and data assets, fixed-wireless last-mile systems, and stakes in foreign wireless network operators.
The outfit, which will continue to call itself AT&T Wireless Group, sold 360 million shares at $29.50 each. It has a market cap of about $68 billion.
AT&T revealed plans for the IPO in early December as a means of capitalizing on what it and analysts see as a huge growth market. The proliferation of mobile phones, mobile devices that can access the Internet and even voice-activated Internet information-delivery services are driving the market.
Says Daniel Briere, founder of TeleChoice, a consulting and research firm: "This will help AT&T stay at the forefront of the wireless market and should encourage other service providers to follow suit to tap this tremendous growth market."
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