In an effort to promote its mobile Internet service in the U.S.,
formally announced that it is taking a stake of about 16% in
. The deal is worth about $9.8 billion.
DoCoMo will pay $6.2 billion to AT&T Wireless and another $3.6 billion to the wireless company's parent, battered telecom giant
. DoCoMo's acquisition values AT&T Wireless tracking stock at $23.50 per share, a 31% premium to its closing price yesterday.
DoCoMo has experience putting 15 million cell phone users on the Internet in Japan. With the deal, DoCoMo gains a commitment from its new U.S. partner to use the Japanese company's standard for a new set of high-speed phone services.
For its part, AT&T will be able to use the cash from the deal to pay down some of its heavy debt load.
Although DoCoMo shares ended higher Thursday on the
amid expectations that the company would announce the deal after the market closed, it has yet to recoup losses it took after initial reports of the move were published last Wednesday.
covered what the
deal would mean to both parties in an earlier story.