AT&T to Acquire DirecTV for $48.5 Billion in Stock, Cash Deal
May 18, 2014 7:48 PM
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The deal would give AT&T a an additional 20 million TV subscribers
Just as the
are trying to grapple with the scope of
Comcast’s $45 billion purchase of Time Warner Cable (TWC)
; AT&T is making waves with a huge acquisition of its own. AT&T announced today its intentions to purchase satellite TV provider DirecTV for $48.5 billion.
The deal, which will be comprised of both stock and cash,
was first rumored early this month
and isn’t too terribly surprising as AT&T and DirecTV currently work together to
provide bundled phone, internet, and TV service
According to the
, AT&T currently has 5.7 million customers on its homegrown TV service,
; but the DirecTV acquisition would give it an additional 20 million TV subscribers. For comparisons sake, the combined Comcast-TWC would have 30 million TV customers.
[Image Source: Fox News]
If the deal is approved, AT&T would offer bundled high-speed internet, TV, phone, and mobile services though all of its 2,300 branded retail stores and its numerous authorized dealers.
“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said AT&T CEO Randall Stephenson. “At the same time, it creates immediate and long-term value for our shareholders.”
Other details about the merger include AT&T’s intentions to abide by the
FCC’s net neutrality rules
for three years following the deal’s approval. AT&T has also made it clear that it plans to expand its broadband service to 15 million customers (mainly in rural areas). In addition, AT&T will offer standalone broadband speeds of “at least 6 Mbps” to customers who are currently served by its wireline IP broadband service and don’t wish to partake in the company’s TV service offerings.
AT&T expects to complete the transaction within 12 months following regulatory approval.
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5/18/2014 9:53:31 PM
I hated ATTs DSL services when I had them. They have had no incentive to improve their service where most cable providers have improved their service consistancy and speeds. Att just keeps on charging obscene amounts of money for 1990's tech. I had bad experiences with cell phone charges to top it off.
Now that I have been with Direct tv for 7 years and have been moderately satisfied. I see now innovation hitting a wall and the cold dead grip of the telecom devil grasping at my TV bill I know DirectTV is dying a slow death. Genie products will be the last idea they try. Its sad really.
Can everyone just leave them all at once to teach them a lesson. Innovate or die their lack of competition allows them to get away with murder. Come my Google and take us away on your beams of light!
RE: Hate condolidation
5/19/2014 9:05:56 AM
U-verse is a pretty good product. Offers pretty competitive options in the Charleston area. I know a few people who've switched to it and gotten faster speeds for the same money who were formerly on DSL.
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