CNET News.com reports: "AT&T said Sunday it will acquire fellow phone company BellSouth in a stock deal worth $67 billion, creating a telecommunications giant that dwarfs its nearest competitor, Verizon Communications.
AT&T became the largest phone company in the United States after local phone company SBC Communications acquired long-distance carrier AT&T last year for $16 billion. The company, which changed its name after the acquisition was completed, serves 13 states, mostly throughout the western and southwestern parts of the country."
In 1984 the government split up AT&T into the smaller Bell companies to promote competition between all the carriers. Now it looks like AT&T is reassembling itself.
SBC was a power house all by itself before it acquired AT&T in 2005. Now we will have to see what the new AT&T will become after it aquires BellSouth in 2006.