AT&t Corp. is giving Google, the dominant Internet search engine, $10 billion in cash, in a deal that is likely to bolster Google’s ability to expand its business center operations across the U.S. as part of the Alphabet Inc. buyout.
AT&ts CEO Randall Stephenson and his Google executive chairman, Eric Schmidt, said Tuesday in a statement that they are acquiring the combined company’s “chief information technology officer,” John Gamble, and a group of about 200 employees.
The combined company, which includes Google’s headquarters in Mountain View, Calif., will be called Alphabet.
Google said the deal will bring the two companies “the combined resources and expertise needed to accelerate the growth of Google businesses across the Americas.”
Stephenson said the acquisition is expected to close in the fourth quarter of this year.
AT &ts Chief Financial Officer John Gamble said in a tweet that the company is acquiring Google’s chief information technology official John Gamble.
The two companies will work together to make Google’s business centers more effective and expand the company’s business and mobile technology operations.
The companies’ chief technology officer will have access to Google’s largest data centers, the company said.
Google is a major shareholder in AT&s stock, valued at about $75 billion, and AT& is one of the world’s largest internet search engines.
Stephenson said that the acquisition will help accelerate the company “the ability to further invest in its business and expand its reach across the globe.”
AT&Ts revenue in the U .
S. jumped 4% in the first quarter of 2017 to $10.5 billion, according to Thomson Reuters data.
Google has been working with AT&ters tech unit, Alphabet’s Internet division, to create a business center in Texas that will be used to build out its business operations across Texas.
AT-T also is building a new technology center in Houston that will house about 500 employees and support other IT functions.
The deal will create the largest technology center to operate within the U