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.
This article is over a month old, voting and posting comments is disabled
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.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
Divided Along Party Lines, Net Neutrality Rules Advance to Discussion Phase
May 16, 2014, 3:35 PM
Comcast to Users: Stop Using the Internet so Much, We Will Cap You
May 15, 2014, 4:36 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
Quick Note: Netflix to Raise Streaming Prices Later This Year for New Customers
April 21, 2014, 11:09 PM
Pandora Increases Monthly Subscription Fee, Kills Off Annual Subscription Option
March 19, 2014, 1:50 PM
Paramount Bans Team America Screenings, Cowers Submissively to North Korea
December 18, 2014, 10:26 PM
News Corp's Fox is Terrified of North Korea, Kills Upcoming Steve Carell Film
December 18, 2014, 4:09 PM
NPD: Online Shopping is up in 2014, But Brick & Mortar Retail is Booming Too
December 12, 2014, 9:09 AM
Amazon Joins 4K Arms Race, With Free 4K Streaming for Prime Members
December 10, 2014, 10:49 AM
Obama Tells Your Kids to Get Coding for CS Education Week
December 9, 2014, 8:01 AM
Microsoft Offers Office, Xbox, Skype Online Services Bundle for $149 -- 65% Off
December 8, 2014, 2:32 PM
Most Popular Articles
BlackBerry Classic Sells Out Online (Seriously, It Has) for North America
December 15, 2014, 7:07 PM
After Coming So Close to Recovering, Northern White Rhino is Nearly Extinct
December 15, 2014, 11:30 AM
Peter Sunde is Sickened by Today's Pirate Bay, Say Internet Activism is Dying
December 15, 2014, 6:02 AM
Quick Note: Windows Phone Finally Gets Candy Crush Saga
December 13, 2014, 2:03 PM
LaWS (Laser) "Kills" Boat-Hauled Fuel Tanks, UAV "Bomber" in the Persian Gulf
December 12, 2014, 8:31 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information