SBC Communications announces acquisition of AT&T Corp. for $16 billion.

SBC Communications announced on January 31, 2005, that it would acquire AT&T Corp. in a transaction valued at approximately $16 billion. The deal was structured primarily as a stock-for-stock merger and brought together two companies that traced their roots to the original Bell System. At the time of the announcement, SBC Communications was one of the largest regional telecommunications providers in the United States, offering local telephone, internet, and data services. AT&T Corp., once the dominant force in U.S. long-distance telephony, had seen its core business decline amid increased competition following industry deregulation. The proposed acquisition reflected SBC’s effort to expand its national presence, strengthen its enterprise services portfolio, and re-enter the long-distance market at scale. The transaction also included the assumption of AT&T Corp.’s debt and provided SBC with ownership of the globally recognized AT&T brand. After the merger was completed later in 2005, SBC adopted the AT&T Inc. name, signaling a consolidation of operations and branding under the historic identity. The acquisition marked a major step in the restructuring of the U.S. telecommunications industry during the early 2000s, as regional carriers and legacy long-distance companies combined to compete in a converging communications market.