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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RE: For Comparison's Sake....
5/19/2014 9:13:16 AM
True, but only because the FCC allowed cable companies, like Comcast and Time Warner, to gobble up all their small town competitors, and divvy up the country into areas where they each have a monopoly.
Adding two monopolies together just makes one bigger one.
Truth be told, AT&T, Comcast and Time Warner should ALL be forced to divvy up, much the way the old "Ma Bell" AT&T was, years ago. At least, until companies providing fiber optic service can expand out further, and offer their services outside of the major metropolitan areas (where they provide excellent competition to AT&T and cable companies).
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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