AT&T Purchases DirecTV for $48.5 Billion

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  • RGmoney
    MVP
    • Sep 2003
    • 4681

    #1

    AT&T Purchases DirecTV for $48.5 Billion



    AT&T announced yesterday that the company will buy DirecTV for $48.5 billion USD, shaking up the pay-for-TV landscape.

    Both boards of directors at the two companies agreed to the deal, with AT&T purchasing DirecTV in a stock-and-cash transaction for $95 USD per share. DirecTV has exclusive rights to NFL Sunday Ticket, as well as minority stakes in the Game Show Network, MLB Network, NHL Network, and the Sundance Channel.

    “This 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," said Randall Stephenson, AT&T chairman and CEO. "... 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."

    AT&T's Uverse TV service reportedly has roughly 5.7 million subscribers in the United States, while DirecTV has around 20 million — plus an alleged 18 million more subscriptions in Latin America. Upon closing the deal, AT&T says that it will expand high-speed broadband service to 15 million more consumers. In addition, DirecTV's standalone service will continue being available at nationwide package pricing for at least three years after the deal goes through.

    The AT&T acquisition is just the latest in big shakeups for the pay-TV industry, as earlier this year, Comcast and Time Warner announced a merger plan for around $45 billion USD. Both agreements, however, could face regulatory roadblocks, as criticism grows for the lack of consumer options.
  • JayBee74
    Hall Of Fame
    • Jul 2002
    • 22989

    #2
    Re: AT&T Purchases DirecTV for $48.5 Billion

    I hated U-Verse.

    Comment

    • aukevin
      War Eagle, Go Braves!
      • Dec 2002
      • 14700

      #3
      Re: AT&T Purchases DirecTV for $48.5 Billion

      I love DirecTV, I hope they don't screw it up. I've never really dealt with at&t.

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      Comment

      • p_rushing
        Hall Of Fame
        • Feb 2004
        • 14514

        #4
        Re: AT&T Purchases DirecTV for $48.5 Billion

        Originally posted by aukevin
        I love DirecTV, I hope they don't screw it up. I've never really dealt with at&t.
        Right now we don't know much. My thoughts are that DTV will still exist and Uverse TV will go away. At&t cannot compete with Comcast for internet speeds if they are also delivering TV on the same bandwidth.

        On At&t, I have Uverse internet and haven't had any problems with it. I don't really like At&t corporate and they have been slow to roll things out. Uverse TV is terrible compared to DTV and their boxes and software very bad. I don't see how they would try to keep those when they now have a lot better options.

        Comment

        • JayBee74
          Hall Of Fame
          • Jul 2002
          • 22989

          #5
          Re: AT&T Purchases DirecTV for $48.5 Billion

          Originally posted by p_rushing
          On At&t, I have Uverse internet and haven't had any problems with it.
          Yeah, I know several people that have it and haven't had any problems with it. Maybe I was just unlucky.

          Comment

          • 23
            yellow
            • Sep 2002
            • 66469

            #6
            Re: AT&T Purchases DirecTV for $48.5 Billion

            ATT too big for their own good. Customer service blows, but hopefully they wont interefere much with DirecTv subs service rather than just wanting them to be under their umbrella.

            Comcast is buying Time Warner right?

            Comment

            • JODYE
              JB4MVP
              • May 2012
              • 4834

              #7
              Re: AT&T Purchases DirecTV for $48.5 Billion

              Yeah Comcast/Time-Warner agreed to the deal already.
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              Comment

              • 23
                yellow
                • Sep 2002
                • 66469

                #8
                Re: AT&T Purchases DirecTV for $48.5 Billion

                Yeah not sure how this will end up down the line. Now that I have time warner internet I hope they dont do something stupid.

                Comment

                • LowerWolf
                  Hall Of Fame
                  • Jun 2006
                  • 12268

                  #9
                  Re: AT&T Purchases DirecTV for $48.5 Billion

                  I've been happy with my U-verse since I got it last summer.

                  I thought AT&T already owned DTV though? I know before we got U-verse in our area, that if you signed up for TV with AT&T, you got DTV.

                  Comment

                  • fishepa
                    I'm Ron F'n Swanson!
                    • Feb 2003
                    • 18989

                    #10
                    Re: AT&T Purchases DirecTV for $48.5 Billion

                    Would be interesting if this actually goes through.

                    Comment

                    • SPTO
                      binging
                      • Feb 2003
                      • 68046

                      #11
                      Re: AT&T Purchases DirecTV for $48.5 Billion

                      Where's Teddy Roosevelt when you need him?

                      The consolidation of power as it pertains to corporations is just out of control and squeezes the consumers to no end. I've heard that AT&T made this deal so that they could expand their TV business as they'll now be in 1 of every 4 homes in the US. I think DTV will remain relatively unscathed while U-Verse will be phased out. I do think U-Verse will be around in a limited capacity though as that service has done a lot of good work in getting cable service to those in rural/out of the way communities.

                      I would probably expect a subscription fee hike in the next year or two for DTV subscribers through.
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                      Comment

                      • wwharton
                        *ll St*r
                        • Aug 2002
                        • 26949

                        #12
                        Re: AT&T Purchases DirecTV for $48.5 Billion

                        Originally posted by LowerWolf
                        I've been happy with my U-verse since I got it last summer.

                        I thought AT&T already owned DTV though? I know before we got U-verse in our area, that if you signed up for TV with AT&T, you got DTV.
                        Probably just a partnership as I have DTV bundled with my verizon... which, by the way, makes me think I'll have to get a new contract soon.

                        Originally posted by SPTO
                        Where's Teddy Roosevelt when you need him?

                        The consolidation of power as it pertains to corporations is just out of control and squeezes the consumers to no end. I've heard that AT&T made this deal so that they could expand their TV business as they'll now be in 1 of every 4 homes in the US. I think DTV will remain relatively unscathed while U-Verse will be phased out. I do think U-Verse will be around in a limited capacity though as that service has done a lot of good work in getting cable service to those in rural/out of the way communities.

                        I would probably expect a subscription fee hike in the next year or two for DTV subscribers through.
                        Never cared enough to look into it, but whenever I hear about these type of deals I wonder how much they're pushing monopoly laws. Seems kind of ridiculous these days.

                        Comment

                        • Redacted01
                          Hall Of Fame
                          • Aug 2007
                          • 10316

                          #13
                          Re: AT&T Purchases DirecTV for $48.5 Billion

                          Originally posted by 13
                          Yeah Comcast/Time-Warner agreed to the deal already.
                          Now, now. Slow down guys. They've agreed, but it hasn't been given the seal of approval by the government...

                          which means, this one isn't out of the woods yet either. Although given that AT&T is small time in the TV business at this point, it's not the same magnitude as two cable companies joining. Although Comcast and Time Warner long ago agreed to swaps in regions much like Comcast and Charter agreed to recently, so if it passes, don't be surprised if that is down the line as well.

                          Also, the NFL is still involved. They can kill this deal (not that they have any reason to) by not renewing their Sunday ticket agreement with DirecTV, but someone else could offer more money and deal is dead.

                          Given the way the stock moved today, the sentiment at this point is people are skeptical. The Comcast/Time Warner deal is still hanging in the balance. And Teddy Roosevelt? You said it yourself basically in your post. U-Verse would go away, and I'm sure their users would be offered a deal to switch to DTV. It's small time as it is. Teddy would certainly be against Comcast and Time Warner, but a mostly mobile company with a small cable TV share buying a TV company? Eh, not as much.

                          And price hikes are nothing new, and being bought by AT&T or not, they would happen every year. I like my DTV too much and they're still going to be a TV provider; they'll hand out discounts and deals like candy on Halloween like they always have for myself and others I know.

                          Comment

                          • p_rushing
                            Hall Of Fame
                            • Feb 2004
                            • 14514

                            #14
                            Re: AT&T Purchases DirecTV for $48.5 Billion

                            Stock movement really isn't an indicator as it was up on the rumors and down on after the announcement, that just happens all the time with deals like these.

                            Both the Comcast and At&t deals really aren't getting rid of a competitor, so I don't see them being stopped because of monopoly concerns. Comcast doesn't offer cable in overlapping areas. At&t Uverse TV only has about 5 million to 20+ million for DTV and At&t is only in a small part of the country so they are buying to expand and become nation wide.

                            At most I see At&t having to get rid of Uverse and Comcast having to sell off all their TV production/channels that they own.

                            Comment

                            • dickey1331
                              Everyday is Faceurary!
                              • Sep 2009
                              • 14285

                              #15
                              Re: AT&T Purchases DirecTV for $48.5 Billion

                              Seems we will have fewer choices than we do now. Just like with sports games thats never a good thing.
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