AT&T And DirecTV 'Merger' Under Way, Acquisition Deal Costs $50B
By Daniel Joseph Cruz | May 14, 2014 3:22 PM EST
AT&T Inc. is at the forefront of acquiring satellite TV provider DirecTV for $50 billion possibly in the next two weeks. AT&T's supposed budget is over $5 billion than DirecTV's current market price of $45 billion.
An AT&T sign is shown on a building in downtown San Diego, California March 18, 2014.
The acquisition deal's price, other terms and discussions are not yet final, according to the sources who refused to be named. AT&T and DirecTV declined to comment about the matter. But the Wall Street Journal said the deal is set to happen in two weeks.
The two companies' merger will be one of the latest television and telecom megadeals to date. Recently, Comcast Corp. proposed a $45 billion deal to Time Warner Cable Inc. The deal between them will be reviewed later next year. Comcast's deal with Time Warner doesn't go unchallenged by critical examinations from the Justice Department for competition balancing. The Federal Communications Commission (FCC) also regulates the deal to be in line with public interest. With this, AT&T and DirecTV's deal will also face the same close inspection and study.
Previously, Dish Chairman Charlie Ergen attempted to buy DirecTV more than a decade ago. Industry watchers and analysts speculated U.S. regulators didn't allow the two largest satellite TV firms, Dish and DirecTV to become one company.
It is a perfect time for AT&T to buy DirecTV. AT&T, being a telecommunications company could find a smoother path for its merger, and is in the advantage of the "Net Neutrality." It is "the principle that all Internet users should have open access to the Internet-as well as the Comcast-Time Warner deal, to float a $50 billion deal of its own," TIME reported.
Should AT&T and DirecTV close the deal, its partnership would become a massive game changer in the pay-television market.
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