Update: AT&T agrees to buy DirecTV for $48.5 billion

[WoodysGirl]

AT&T Gets Very Direct
May. 5, 2014 11:31 AM ET

AT&T (T) has opened discussions with DirecTV regarding a possible acquisition. By purchasing the satellite provider, AT&T would have better integration with broadband and TV services.

The deal would be valued at over $40 billion and would add over 20 million subscribers from DirecTV with AT&T's customer base of more than 5.7 million. The company's U-verse TV services signed up an additional 200,000 customers in the first quarter of 2014.

If Acquisition Approved, Clearer Sights For ATT Shareholders

DirecTV had revenue of $24.7 billion in 2013, an increase of 6 percent over the prior year. This increase came directly from greater average revenue per subscriber. However, total subscriber additions declined by almost 30,000 compared to the prior year. The decrease in subscribers was due to the intensely competitive sector and a maturing industry, according to DirecTV.

AT&T expects satellite TV to provide the company with a more efficient method of delivering live TV than over its wired network. Acquiring DirecTV would allow AT&T to utilize its wired network for video-on-demand and fast broadband services.

Read the rest: http://seekingalpha.com/article/2191003-at-and-t-gets-very-direct

 

[CowboyStar88]

I hate the fact that there is no competition it will make the prices even more ridiculous then they already are

 

[iceberg]

Please, no.

 

[BigStar]

1984...baby steps

 

[DanteEXT]

Aww hell, I finally ditched AT&T completely a year ago when I went Comcast and Verizon and now they are going to suck me back in.....

 

[Phoenix]

Disturbing news to say the least!

 

[Tabascocat]

Without reading through the meat and potatoes, does this mean UVerse customers can get the NFL/MLB package if this goes through?

 

[cml750]

I love my Direct-TV and I have gotten totally away from ATT. This does not make me excited. I just wish Direct-TV could com to a carriage agreement with CSN-Houston so I could watch my other team, the Houston Rockets, on TV.

 

[BigStar]

Direct TV is one of the last decent cable companies...please don't umbrella this thing more than it already has. In all honesty, I've only kept the basic package for the annual NFL ticket package. They tend to work with you on pricing (got the ticket free every other year and they give you free movie packages, etc. to remain on). In PG County, I have a Aunt going through hell with Comcast @ the moment and had to go almost two weeks with no service. Her bill dwarfs mine and she doesn't receive the same channels as I do Terrible company.

 

[WoodysGirl]

AT&T to buy DirecTV in $48.5 billion cash and stock deal

By Mike Stone


(Reuters) - DirecTV, the No. 1 U.S. satellite TV operator, said on Sunday it has agreed to sell itself to AT&T for $48.5 billion, in the second mega-deal to shake up the U.S. television landscape this year.

The deal with Dallas-based AT&T, which has some TV and broadband services, is the latest in a string of big takeovers the wireless operator has considered. Those include an abortive bid for T-Mobile USA in 2011, as well as a potential takeover of Vodafone Plc that receded as a possibility after Comcast Corp surprised the industry this year with a $45 billion bid for Time Warner Cable Inc.

AT&T said it is offering $95 per DirecTV share in a combination of stock and cash, a 10 percent premium over Friday's closing price of $86.18. The cash portion, $28.50 per share, will be financed by cash, asset sales, financing already lined up and other "opportunistic debt market transactions."

The transaction has a total value of $67.1 billion, including DirecTV's net debt.
As part of the deal, and to facilitate regulatory approval, AT&T will sell its roughly 8 percent stake in Carlos Slim's America Movil. DirecTV has some 18 million customers throughout Latin America, including a stake in Sky Mexico.

Read more: http://finance.yahoo.com/news/t-agrees-buy-directv-48-5-billion-cash-214127852--sector.html

 

[CowboyStar88]

Not happy about this at all

 

[jnday]

Not happy about this at all

Will it really change anything with the service?

 

[CowboyStar88]

Will it really change anything with the service?

Well companies don't just buy a company to buy them. I would think they would look at ways to increase profits, and that of course could lead to higher prices. Just watch the NFL Sunday tickets price will increase at some point because of the deal.

 

[speedkilz88]

So a few years ago Dish wasn't allowed to purchase DTV but it's ok for AT&T?

 

[WoodysGirl]

Well companies don't just buy a company to buy them. I would think they would look at ways to increase profits, and that of course could lead to higher prices. Just watch the NFL Sunday tickets price will increase at some point because of the deal.

 

[BrAinPaiNt]

So a few years ago Dish wasn't allowed to purchase DTV but it's ok for AT&T?

My guess would be they did not allow it because it would have created a monopoly in the satellite tv industry with those being the only two I know of that offer satellite tv nationwide.

 

[WoodysGirl]

 

[BigStar]

Will it really change anything with the service?

Not initially, but when the price increases become too much of a burden, who do you turn to? Nada = quasi monoply status. Services and repair services will likely decrease in quality bc of the lack of competition and on down the list.

 

[BrAinPaiNt]

Not initially, but when the price increases become too much of a burden, who do you turn to? Nada = quasi monoply status. Services and repair services will likely decrease in quality bc of the lack of competition and on down the list.

You can't get Dish Network...or Verizon for your phone?

Sure the price will go up for the ATT and Direct TV...but there are alternatives out there.

I have ATT service for my phone, no way I am switching to satellite though...sticking with my cable as I like it.

 

[Rockport]

You can't get Dish Network...or Verizon for your phone?

Sure the price will go up for the ATT and Direct TV...but there are alternatives out there.

I have ATT service for my phone, no way I am switching to satellite though...sticking with my cable as I like it.

The issue I have with the cable companies is that the satellite signal goes through the cable company's infrastructure which in turn, weakens the signal. The quality of a direct satellite signal vs one that goes through the cable company, i.e. u-verse, is much much better. The negative is that your satellite signal can be interrupted by heavy rain. Personally, I'll deal with losing my reception occasionally (although here in San Antonio it hardly ever rains) rather than get a weakened signal from the cable companies. And yes, you can tell the difference.