The March 2011 announcement that AT&T was acquiring T-Mobile USA from Deutsche Telekom is a _________ acquisition and is intended to _________ .
A) vertical; increase diversification
B) horizontal; increase market power
C) vertical; overcome entry barriers
D) related; increase speed to market

Question

Quizplus · Accepted Answer

The acquisition of T-Mobile USA by AT&T is a horizontal acquisition as both companies are in the same industry and it is intended to increase market power by consolidating the market share.

The March 2011 Announcement That AT&T Was Acquiring T-Mobile USA