AT&T Said in Advanced Talks to Buy DirecTV for About $50 Billion

[onehandle]

Source: Huffington Post

AT&T Inc. (T) is in advanced talks to acquire DirecTV (DTV), the largest U.S. satellite-TV provider, for about $100 per share, according to people familiar with the matter.

Under the plan being discussed, DirecTV management will continue to run the company as a unit of AT&T and DirecTV Chief Executive Officer Mike White plans to retire after 2015, said the people, asking not to be named because the information is private.

The $100 per share price values El Segundo, California-based DirecTV at about $50 billion. That’s about 29 percent above DirecTV’s price on April 30, before the Wall Street Journal first reported the companies were in talks.

DirecTV and AT&T are planning on a 12-month regulatory process, one of the people said.


Read more: http://bloomberg.com/news/2014-05-12/at-t-said-in-advanced-talks-to-buy-directv-for-about-50-billion.html

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First, they'll need approval from Comcast...

[Stuart G]

1. Aren't there laws against "monopolies?"

Isn't AT&T large enough?

[AtheistCrusader]

7. This wouldn't give AT&T a monopoly in video content/cable-like delivery.

The AT&T U-Verse video stuff is a joke. This would actually make AT&T a competitor to Comcast for cable delivery.

Doesn't help with internet/broadband access though. I wonder if they will continue to partner with CenturyLink after the hypothetical merger, or will they maybe push out some AT&T wireless data solution, like ClearWire?


This could be good for consumers, except the likelihood of AT&T pricing something in favor of consumers is historically not good odds.

[rhett o rick]

10. I cant see how consolidation like this can be good news. Maybe on the short term. nm

[AtheistCrusader]

11. In this case it sets up AT&T and Comcast as competing titans.

Until one of them falls over dead, we MIGHT get some benefit here as consumers.

[lostincalifornia]

13. I disagree. It would create two giants that will control the prices

[AtheistCrusader]

14. If that can be proven, then

racketeering laws apply, and people actually go to jail (sometimes).

I know, that sounds funny, but there is precedent.

[lostincalifornia]

17. Doesn't have to be proven to be true. Gas prices are pretty much fixed. Same thing for cell phone

prices. However, a funny thing happened with cell phone prices, because the merger was NOT allowed between telephone and Tmobile, guess what, Tmobile broke the mold, which would NEVER had happened if the merger took place. Sprint is doing the same thing.

As far as ISP, except for a few special locations, whenever a city government wants to offer free internet seems that it rarely gets approved, and I would bet that the influence of large ISPs on the politicians has something to do with it.

Majority of people have over 100 channels with cable or satellite, but only watch about 15 of them. Funny that the lobbyists always go to work whenever a proposal to require ala carte service takes over.

Companies like netflix help offset that, but funny how comcast was throttling down the speed of those streaming netflix, and then suddenly after Netflix agreed to a payoff, the speed suddenly increased. There is plenty of proof of that, by look at the speeds before and after.

What I am saying, is there may be a precedent, but with the lobbyists and political influence, it usually doesn't get very far.

[pipoman]

2. Does this include Hughsnet?

This could be the answer to their getting out of the land line business.

[LiberalArkie]

4. Directv is no longer owned by Hughes Corp.

So Hughesnet would not be part of it.. Directv used to be owned by Hughes, but they sold it to News Corp

[pipoman]

5. I see

I still wonder if it is their way of providing phone and Internet services to rural landline customers. .

[LiberalArkie]

6. I think it is a way to get lower prices from the tv providers

since their customer base would be larger

[Atman]

3. Not anymore...altough AT&T should be familiar with the old laws.

It's a calculated decision buy the BOD...they're betting no one at the FTC, and whatever divisions this falls under, will give a damn. And if they give a damn, AT&T the good corporate citizen that it is, will give a few billion dollars to the five or six guys voting on this (plus the ad campaign, of course). Even if this eventually get proven to be another AT&T monopoly, the insiders on the board and the premium stockholders will know of it well in advance, will self off, and still walk away with bazillions. It is a no-lose for AT&T. Citizen AT&T knows that know citizen in its community every does one day of jail time, so go for it! BALLS OUT!

Ironically, I have AT&T service for my wireless now. But I hated them so much that several years ago I quite, cancelled my contract, took a hit, and switched to Cingular which turned out to offer pretty good service. But after a few years, AT&T then bought out Cingular. I'm back with the company I hated, not by choice but because of merger buyout bullshit like this. Incredible. I don't see it stopping. How are the customer (read: subjects) supposed to stand up to these guy? I don't happen to have a spare billion or two lying around with which I'd be able to protect my rights as a non-corporate citizen.

[dembotoz]

8. the paperwork will be signed on a friday the thirteenth--scheduled for during the day make sure

someone is home

[Bigredhunk]

19. Outstanding!

[blackspade]

9. This sucks.

They have been 'partners' for a while, but a merger will spell further trouble for consumers....

[WillyT]

12. K & R !!!

[LuckyLib]

15. Gee! Two companies that are masters at ripping off the

consumer will merge!! Imagine that! I can only dream of what 50B would buy for our nation's schools, clinics, women's health centers.

[Thor_MN]

18. Every restaurant is Taco Bell...

[oldbitty]

20. When does it end?

AT&T Broadband is owned by Comcast. They merged back in 2002ish.

[blkmusclmachine]

21. Soon there will only be 6-7 Mega Corporations running the whole puppet show that is Washington DC.

"Change!"

[DontTreadOnMe]

22. AT&TExxonMobilGE.. or will it be AppleBPSamsungDaimler

I think it will come down to four companies, that merge into one to rule them all!

BRAWNDO!