Why Media Companies Will Feel the Pinch if AT&T and T-Mobile Seal the Deal

When the No. 3 US ad spender, AT&T, makes a bid to acquire a marketer that spends $500 million-plus domestically, the media world braces itself. But AT&T's $39 billion bid for T-Mobile could mean fewer ad dollars for U.S. media companies -- if the deal goes through. Just not at first.

If history is any guide, the combined entity will likely, over time, spend less than the $2.7 billion they collectively spent in U.S. measured media in 2010, according to Kantar Media. If the Federal Communications Commissions and Department of Justice approve the deal -- this will probably take a while -- media companies could enjoy an initial uptick in ad spending as the new entity tries to get the word out. If AT&T and T-Mobile become one entity, the marketer will have to let T-Mobile's 34 million subscribers -- and any potential customers -- know that it's all just AT&T.