AT&T to Acquire DirecTV for $48.5 Billion in Stock, Cash Deal
May 18, 2014 7:48 PM
comment(s) - last by
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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All I want
5/19/2014 3:12:35 AM
All I really want is for it to be illegal for content OWNERS to be owned by/merged with/have controlling interests in/etc. the content PROVIDERS. I.e. no vertically integrated media companies.
If we can stipulate this, then there won't be issues with net neutrality because ISP's won't be trying to play favorites to their buddy companies. ISP's will have to be a "dumb pipeline" because traffic is traffic--additional fees should only equate to a larger "pipeline", not to larger data caps or preferential treatment.
RE: All I want
5/19/2014 1:39:43 PM
But on what possible grounds could we make that illegal? And what kind of precedent would that be setting?
Can oil companies own gas stations?
Can farmers own a farmers market?
You can't just wave a magic want and make vertical integration "illegal" because you don't like a merger that probably shouldn't be made.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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