Rumors confirmed: AT&T plans to buy DirecTV

May 19, 2014

AT&T plans to acquire DirecTV for about $50 billion, it announced Sunday, laying to rest days of reports based on anonymous sources that such a deal was in the offing. The proposed acquisition was unanimously approved Sunday by the boards of both companies, with DirecTV shareholders to receive $95 per share—$28.50 of that in cash and $66.50 in AT&T stock. DirecTV, the largest satellite TV provider in the U.S., will maintain its headquarters in El Segunda, Calif., under terms of the deal, which must be approved by regulators. The proposed acquisition is “a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens mobile devices, TVs, laptops, cars and even airplanes,” AT&T Chairman and CEO Randall Stephenson said in a statement announcing the deal. DirecTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business. DirecTV is a great fit with AT&T and together well be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services.”To read this article in full or to leave a comment, please click here

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