att-directv

via USA Today

AT&T agreed Sunday to buy DirecTV for about $48.5 billion in yet another mammoth deal in the pay-TV space this year that would immediately boost the telecom giant’s customer base at a time of confounding industry challenges.

The merger, which both boards approved Sunday, is the latest evidence of TV-industry consolidation, one born of telecommunications companies’ desire to amass customers and control content and delivery. With streaming and wireless technology upending the industry, cable and satellite service providers are rushing to add product options while boosting revenue per customer to please shareholders.

In the deal, AT&T would pay DirecTV shareholders $95 per share. Including DirecTV’s debt, the total transaction’s value is about $67.1 billion.

“Customers will be able to get wireless, voice, data, TV and home security from the same company nationwide,” says Roger Entner, an analyst at Recon Analytics. “It allows (AT&T) to grow the share of consumers’ spending on telecom.”

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