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AT&T Inc. (NYSE: T) plans to buy DirecTV for $48.5 billion to gain more than 38 million video subscribers in the United States and in Latin America.

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AT&T Seeks to Offer National Video with Purchase of DirecTV

AT&T Inc. (NYSE: T) plans to buy DirecTV for $48.5 billion to gain more than 38 million video subscribers in the United States and in Latin America.

AT&T Seeks to Offer National Video with Purchase of DirecTV (Bloomberg)

AT&T Inc. (NYSE: T) plans to buy DirecTV for $48.5 billion to gain more than 38 million video subscribers in the United States and in Latin America. AT&T announced it will pay $95 for each share of DirecTV, with $28.50 coming in cash and the equivalent of $66.50 in stock. That valuation is 10 percent more than DirecTVâ??s closing price on May 16. When factoring in net debt, the deal values the largest U.S. satellite-TV company at $67.1 billion. Randall Stephenson, chief executive officer of AT&T since 2007, agreed to buy DirecTV after competitors Comcast Corp. (CMCSA) and Time Warner Cable Inc. (TWC) announced a merger of their own to spur communications industry consolidation. The purchase, once approved by U.S. regulators, would give AT&T a national satellite-TV provider to combine with its existing packages of wireless, phone and high-speed Internet service. Without DirecTV, AT&Tâ??s home video offering would have remained regional. The acquisition also gives AT&T a chance to lure additional subscribers if it is able to retain DirecTVâ??s exclusive NFL Sunday Ticket, which gave the satellite TV provider the exclusive rights to sell a supplemental subscription to its customers. For football-loving fans, the chance to watch all of the NFL games was a key differentiator to subscribe to DirecTV rather than a rival pay-TV service.

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Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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archive

AT&T Seeks to Offer National Video with Purchase of DirecTV

AT&T Seeks to Offer National Video with Purchase of DirecTV (Bloomberg)

AT&T Inc. (NYSE: T) plans to buy DirecTV for $48.5 billion to gain more than 38 million video subscribers in the United States and in Latin America. AT&T announced it will pay $95 for each share of DirecTV, with $28.50 coming in cash and the equivalent of $66.50 in stock. That valuation is 10 percent more than DirecTV’s closing price on May 16. When factoring in net debt, the deal values the largest U.S. satellite-TV company at $67.1 billion. Randall Stephenson, chief executive officer of AT&T since 2007, agreed to buy DirecTV after competitors Comcast Corp. (CMCSA) and Time Warner Cable Inc. (TWC) announced a merger of their own to spur communications industry consolidation. The purchase, once approved by U.S. regulators, would give AT&T a national satellite-TV provider to combine with its existing packages of wireless, phone and high-speed Internet service. Without DirecTV, AT&T’s home video offering would have remained regional. The acquisition also gives AT&T a chance to lure additional subscribers if it is able to retain DirecTV’s exclusive NFL Sunday Ticket, which gave the satellite TV provider the exclusive rights to sell a supplemental subscription to its customers. For football-loving fans, the chance to watch all of the NFL games was a key differentiator to subscribe to DirecTV rather than a rival pay-TV service.

Newsletter Signup.

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