Calling DirecTV the best video provider in the business, AT&T CEO/Chairman Randall Stephenson made video delivery across all screens--television and mobile devices--a key point in an investor call discussing its $48.5 billion acquisition of the satellite pay-TV provider.
AT&T's announcement that it will buy DirecTV in a $49 billion deal leaves Dish Network once again without a potential partner or suitor. However, analysts say the deal could be what pushes Dish and its Chairman Charlie Ergen to find a long-term wireless partner.
AT&T's bid to acquire DirecTV for $48.5 billion poses multiple challenges for the cable industry and, specifically, for Comcast's ongoing effort to acquire Time Warner Cable for $45.2 billion.
AT&T agreed to purchase DirecTV in a $49 billion deal that will make the telecom company a major powerhouse in the pay-TV market. AT&T will gain DirecTV's 20 million U.S. subscribers as well as access to a portfolio of content that AT&T will be able to distribute across mobile, video and broadband platforms.
A team of internal merger-and-acquisition wizards conjured up a succession of deals over two decades that turned Midwestern regional telco Southwestern Bell into AT&T, now the largest U.S. telecom carrier by revenue. And although this famed merger team was frustrated in its attempt to close a merger deal with T-Mobile US in 2011 after antitrust authorities stepped in, it is still chasing deals both large and small.
Comcast's proposed $45 billion acquisition of Time Warner Cable is not necessarily expected to punch up the volume of dealmaking this year, but it is expected to boost prices, according to a new study by PricewaterhouseCoopers.
AT&T is in talks to buy DirecTV for at least $50 billion--and if the two companies can come to terms, it would create a 26-million subscriber video powerhouse which would rival Comcast's proposed $45 billion takeover of Time Warner Cable.
Dish Network had a successful first quarter when it came to adding subscribers to the fold and generating revenue. The company wasn't quite as successful when it came to net income.
The relationship between AT&T and DirecTV is apparently getting cozier as the two dance around the possibility of AT&T acquiring the nation's leading satellite provider.
Other pay service providers shouldn't have to pay the freight because Time Warner Cable paid more than reasonable market value for the rights to broadcast the Los Angeles Dodgers on its SportsNet LA channel, DirecTV CFO Patrick Doyle told analysts during a first quarter earnings call.