AT&T in advanced talks to buy DirecTV in over $50-bn deal
13 May 2014
US telecoms giant AT&T is in advanced talks to buy satellite TV operator DirecTV in a over $50-billion deal, in what would be the largest telecom deal in years, The Wall Street Journal, reported, citing unnamed sources familiar with the matter.
The two companies are in talks on a transaction, which would involve a mix of cash and AT&T stock totaling to $92 to $94 a share and a deal is expected to be announced in the next few weeks, the report said.
The deal would be bigger than Comcast's planned $45-billion acquisition of Time Warner Cable, which has invited intense scrutiny from the US antitrust regulators. (See: Time Warner Cable to merge with Comcast in $45-bn deal)
A successful deal would combine the second-largest wireless carrier in the US with the largest satellite television company in the country.
With more than 32 million customers in the US and Latin America, DirecTV customers make up nearly 20 per cent of all US cable and satellite subscribers.
A merged AT&T-DirecTV would hold a large chunk of wireless spectrum and enable it to better compete against industry leader Comcast.
Dallas-based AT&T, which has a market cap of $185 billion, is one of the leading providers of IP-based communications services to businesses.
AT&T is the second-largest provider of mobile telephony with 250 million customers and the largest provider of fixed telephony in the US.
It also provides broadband subscription television services. and has the largest international coverage of any US wireless carrier, owning and operating more than 34,000 Hot Spots at popular locations such as restaurants, bookstores, and hotels.
DirecTV offers more than 285 channels with more than 170 HD channels in Dolby-Digital 5.1 theater-quality sound.
The California-based company has the most comprehensive collection of sports programming, including NFL Sunday, Ticket, NHL, Center Ice, and NBA League Pass.
