AT&T to sell internet, cable and internet company to Google
AT&t is to sell its broadband business to Google for $3.4 billion, part of a move that will help expand its internet and phone services.
The company said Thursday that it would use Google’s cloud computing platform to offer cloud-based Internet access, as well as video streaming and online gaming services.
AT&ts new deal with Google was announced in July, and it is the largest deal ever for a Google-owned company.
AT &t said it will acquire a majority stake in Google’s data center business, which runs data centers in its Kansas City, Missouri, and Houston, Texas, markets.
The deal will allow AT&s internet services to be offered to consumers and businesses across the globe.
AT, a unit of AT&T, said the deal was expected to close in the second quarter.
The transaction will allow Google to acquire an asset that AT<ds data center operations use to provide the company with revenue from its data centers, and that it has used to grow its own services.
“Our goal at Google is to create a world-class cloud-computing platform for the world’s largest tech company,” Google chairman Eric Schmidt said in a statement.
“We look forward to working with AT> as we expand and strengthen our relationships.”
AT&tt said it would be the largest acquisition in Google-branded telecom since Verizon acquired Motorola Mobility in 2012.
AT is owned by Charter Communications, a U.S. wireless carrier.
Google has been building its own data centers for the past two decades, and Google acquired Motorola last year.
Google also bought data center company CloudFlare in March, a move it said would help Google make more data centers available to more users and better compete with competitors.
Google said that it plans to add about 10,000 jobs as part of the deal, and will invest $4 billion over five years in its cloud infrastructure business.
AT plans to hire nearly 100,000 people as part the deal.
AT and Google are not trading publicly, and AT&rt reported that it expects the deal to close this month.
AT said in its announcement that the acquisition would add more than 2,200 jobs in the Kansas City area, while Google’s Kansas City-based operations will add about 2,000 positions.
AT had about 2.2 million customers at the end of its fiscal year ended March 31, and about 4.3 million at the start of the current fiscal year.
AT’s deal with the search engine giant will give AT&tg customers access to Google Search and its services, as part, the company said, of its Cloud computing service.
AT says the deal also includes AT&nts cloud computing business, a service that lets its customers connect to Google cloud computing infrastructure.
AT will pay $3 per month for the service, plus an additional $1 per month in advertising revenue, while it will also pay $1.30 per month per device for a device connected to the Google service.
Google will be able to offer the service in about 30 countries worldwide.
AT shares rose 7% to $30.80 in morning trading Thursday, after news of the AT&td deal broke.
AT’ s deal with google is a major deal for AT&tl because Google has more than 30 million monthly active users, according to analysts.
AT has about $3 billion in cash and cash equivalents, and has a net worth of about $60 billion.
AT CEO Ed Chen said in July that Google was worth $2.8 trillion.
ATt was the biggest U.K. telecommunications company in 2016, according an Associated Press review of company filings.