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It's a deal: AT&T to acquire DirecTV

Posted: , by Maxwell R.

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It's a deal: AT&T to acquire DirecTV
The boards of AT&T and DirecTV held special meetings on Sunday where they approved a plan for the latter to be bought out by the former for $95-per-share.

Rumors of the deal surfaced early last week and it was leaked then that a deal could be announced within days, and so it has, with both boards approving the deal simultaneously and unanimously. AT&T will acquire DirecTV in a mix of stock and cash.

AT&T trumps this deal as a creation of a “unique new competitor with unprecedented capabilities in mobility, video and broadband services.” It is expected that AT&T will use this new asset to augment U-Verse offers, which will, in turn, free up bandwidth demands in those markets.

DirecTV is already sold at many AT&T retail locations, and with a portfolio that includes NFL Sunday Ticket, and other sports oriented content offers, AT&T will be able to better bundle these services with its wireless line-up, including expanded delivery of content to mobile devices.

AT&T has issued a number of commitments as part of the transaction. AT&T plans to deploy broadband services to more rural areas by using fixed-wireless and fiber installations. A stand-alone broadband package with guaranteed pricing for three years. There will be a nationwide DirecTV pricing package, consistent for three years.

AT&T also commits to net-neutrality, regardless of any rulings that come from the FCC that may vacate such requirements. Finally, AT&T re-committed to participate in next-year’s spectrum auction, although it does point out the caveat “as long as there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2x10MHz nationwide spectrum footprint.” The company notes that the deal with DirecTV will not stop it from spending at least $9 billion in the auctions in 2015.

Of course, regulators in Washington, DC, a few states, and some governments in Latin America need to sign off on the deal. Assuming everything moves forward, that process will take about a year.

source: AT&T
Press Release

38 Comments
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posted on 18 May 2014, 16:39 2

1. fzacek (Posts: 1641; Member since: 26 Jan 2014)


AT&T made a big mistake. Television is dyeing away and internetainment is taking over...

posted on 18 May 2014, 16:47 6

3. HASHTAG (Posts: 152; Member since: 31 Jan 2014)


Uh if you say so.

posted on 18 May 2014, 16:55

5. Augustine (Posts: 712; Member since: 28 Sep 2013)


I hear you. I myself cut cable about a couple of years ago and don't miss TV. However, by joining the ATT's Internet infra-structure with DTV's media deals, the move away from conventional TV to on-demand content might actually be easier to both merging companies.

posted on 18 May 2014, 16:57

6. networkdood (Posts: 6267; Member since: 31 Mar 2010)


Ummm, while that may be true - Uverse is not your standard Cable TV service - I think this is a big deal for AT&T because of the football package it can now sell with UVERSE....lmao

posted on 18 May 2014, 17:13 4

7. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Boy that was a dumb post.

posted on 18 May 2014, 17:35

8. fzacek (Posts: 1641; Member since: 26 Jan 2014)


Why exactly? Television is eventually going to become obsolete due to internet services like Netflix and YouTube being cheaper and more convenient...

posted on 18 May 2014, 18:00

10. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Bug someone else please.

posted on 18 May 2014, 18:09

11. fzacek (Posts: 1641; Member since: 26 Jan 2014)


You're so stubborn...

posted on 18 May 2014, 18:42

17. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Not stubborn, just not interested in a pointless debate with you.

posted on 18 May 2014, 18:21 1

14. marcski07 (Posts: 371; Member since: 25 Apr 2014)


the geekiness on this one is too damn high.

posted on 18 May 2014, 18:27

15. Omarc07 (Posts: 242; Member since: 12 Nov 2012)


I dont think tv is going away anytime soon I know me and other people who are not paying for Netflix and wont ever pay for it.Besides if u had uverse u dont need Netflix I had dish,direct tv and at&t uverse n uverse was the best!! Its awesome!

posted on 18 May 2014, 20:28 1

23. networkdood (Posts: 6267; Member since: 31 Mar 2010)


I watch almost all of my TV on the internet now....tons of free shows and movies are available...

posted on 18 May 2014, 20:44

27. JunitoNH (Posts: 892; Member since: 15 Feb 2012)


Huh? Spell checker not working today?

posted on 18 May 2014, 21:45

29. fzacek (Posts: 1641; Member since: 26 Jan 2014)


Internetainment is a word. look it up on Urban Dictionary...

posted on 18 May 2014, 21:46

30. fzacek (Posts: 1641; Member since: 26 Jan 2014)


*dying

posted on 19 May 2014, 15:30

38. bigdawg23 (Posts: 366; Member since: 25 May 2011)


If anyone thinks that Cable Companies and Phone Companies will continue shrink in Television subscribers and not jack up internet rates is crazy Also look at more channels are starting to demand subscribers for television to access their new content(ABC). I can see the day come that says if you have television internet it will be X price and if you don't it will be X times 3. Television providers will not allow to lose all the subscribers to internet. They will also demand much higher fees from Amazon and Netflix.

posted on 18 May 2014, 16:41 6

2. 0xFFFF (Posts: 2980; Member since: 16 Apr 2014)


“a unique new monopoly with unprecedented monpoly power in mobility, video and broadband services.”

It seems with each new merger of corporate giants, America takes another step further into fascism.

"Fascism should more properly be called corporatism because it is the merger of state and corporate power." - Benito Mussolini.

posted on 18 May 2014, 19:21 1

18. james1 (Posts: 79; Member since: 16 Mar 2013)


The cable industry is already a monopoly anyway. Providers agree to set a certain price that's the same everywhere, and you rarely find two providers serving in the same area. Take for example Comcast and time warner cable, where there is one, there isn't the other.

posted on 19 May 2014, 11:30

36. Augustine (Posts: 712; Member since: 28 Sep 2013)


It is a monopoly sponsored by city councils around the country which granted them exclusivity for a many years, creating a barrier to competitors.

posted on 18 May 2014, 16:52 3

4. WillieFDiaz (Posts: 45; Member since: 22 Dec 2010)


I think that the FCC should tell AT&T if they want DirecTV, they must first divest all their fiber and U-Verse to competitors in those markets. With the new spectrum acquired they will NOT be able to use it for mobile services at any point in the future, and all spectrum must either be used for television services or low-cost rural internet with actual real-world data usage limits (none of this 2, 5, 10GB usage, think more like 250-300GB usage limits or more).

If AT&T wants to use the tried and untrue, "We will be able to expand into rural markets with DirecTV" line like they tried to use with T-Mobile merger that failed, then they should be forced to actually do so, and under highly regulated conditions. They are the ones that want to expand so badly, then let them, but not at the expense of the customer. They own copper landline in rural areas they could extremely cost efficiently and effectively convert majority of this to fiber, or use DirecTV spectrum to relay calls from base stations in rural areas to the central offices that carry fiber, thus providing some form of next generation services.

posted on 18 May 2014, 18:17

12. robert26101 (Posts: 84; Member since: 21 Mar 2014)


Um no AT&T should be able to use the spectrum they require for mobile services.

posted on 18 May 2014, 17:50 4

9. clevername (Posts: 1428; Member since: 11 Jul 2008)


I hope the FCC doesn't approve. This merger is bad, especially when you remember the comcast-time Warner deal. It'll basically be those two and Verizon. Some local companies as well but those get bought up all the time. Soon enough there will be only 3 national ISPs. Let the secret price gouging begin. Who's ready to pay 70/mo for 15mb down?

posted on 18 May 2014, 20:29 1

24. networkdood (Posts: 6267; Member since: 31 Mar 2010)


The FCC has a chairman that used to be a lobbyists for companies like COMCAST - so, you know whose side the FCC is on - luckily it is a committee and not everyone on it is on the big telecoms' payroll...yet...

posted on 19 May 2014, 10:57

35. InspectorGadget80 (Posts: 6429; Member since: 26 Mar 2011)


You're right bout that. Remember when they try to buy tmobile? Consumers make their plea and at&t drop their bid for buying them.

posted on 18 May 2014, 18:17 2

13. Topcat488 (Posts: 1141; Member since: 29 Sep 2012)


AT&T buying DirecTV is as bad as Facebook buying What'sApp, IMO... What is this world coming to, when the customer is left out in the cold by these companies. Customer Service and spying aren't a big asset in these companies!

posted on 18 May 2014, 18:41

16. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Your opinion doesn't matter, you didn't spend the 50 billion dollars. AT&T knows what's it's doing. They've been around a long long time.

posted on 18 May 2014, 20:30 4

25. networkdood (Posts: 6267; Member since: 31 Mar 2010)


Nope, hate to break it to you - this is a website that was designed to garner opinions....ask phonearena - if you are on your period, then just do not post.

posted on 19 May 2014, 04:41 2

31. 0xFFFF (Posts: 2980; Member since: 16 Apr 2014)


Remember, cut the iCampers some slack. It must be getting uncomfortable in the tent that they are camping in. Imagine darkjedii, his wife, Sauce in a little tent now for a few days, with many long months ahead of them. It is a true test of their iFaith.

posted on 19 May 2014, 10:56

34. Augustine (Posts: 712; Member since: 28 Sep 2013)


AT&T has been around for just a decade, after the old AT&T that Alexander Bell founded went belly up and was acquired by SBC.

posted on 18 May 2014, 19:34

19. corporateJP (Posts: 1555; Member since: 28 Nov 2009)


No more bundle billing and discounts for Verizon customers.

LOL

posted on 18 May 2014, 19:47

20. wilsong17 (Posts: 893; Member since: 10 Mar 2013)


as long my service which i get for free with a box setup

posted on 18 May 2014, 19:57 3

21. mike2959 (Posts: 228; Member since: 08 Oct 2011)


Some you sound like the old CEO of BlackBerry. "Nobody wants to listen to music from a phone" see where he is now? And his company? The cell phone is top dog. Not a laptop, not a TV, not even a Tab. A few things still need to fall in place.
1) The old dog networks, allowing broadcast over cell company airwaves. Anyone ever see American idol live for FREE on their phone? Nope, not yet.
2) Once 4G LTE Advanced (not quite fast enough yet) AND data prices come down and/or limits gone. Cable/DSL/phone companies will be gone.. The world WILL be wireless.
Your phone in the future will be like a remote, and will feed ALL the content, the national networks, the Super Bowl game..you will pay AT&T 95.00 a month for unlimited 4G LTE A, which will include a entertainment package of 200 TV channels,that gets streamed through your phone to the flat screen. No more cable, no more dish, no more of the time Warner's.

posted on 19 May 2014, 04:42

32. 0xFFFF (Posts: 2980; Member since: 16 Apr 2014)


Except it will be a lot more than $95. Please see your second post.

posted on 18 May 2014, 20:03 1

22. mike2959 (Posts: 228; Member since: 08 Oct 2011)


Oh and for the younger crowd on here, deregulation DOES NOT LOWER PRICES. Every industry that's been split up by the government (phone companies like AT&T) the prices have GONE UP, or the industry has gone to hell. Your local phone company barely hangs on, and when adjusted for inflation it's more expensive today then before deregulation.

posted on 18 May 2014, 20:32 1

26. networkdood (Posts: 6267; Member since: 31 Mar 2010)


looks like Net Neutrality will be going away - will be a sad day for the internet...

posted on 19 May 2014, 11:35

37. Augustine (Posts: 712; Member since: 28 Sep 2013)


That defies logic and history. Of course, the splits were done with monopolistic and cartelized guarantees by the government. But, historically, industries which were never regulated do lower prices with competition, when the consumer is king. When an industry is regulated, the king, the state, is king and is always open to get greased by those being regulated, which are the ones actually writing regulations sanctioned by the state.

posted on 18 May 2014, 20:47 2

28. Speedy3 (Posts: 1; Member since: 07 Jun 2013)


Well, I guess I'll be canceling my DirectV service soon. AT&T Uverse is horrible. Where is Google Fiber?

posted on 19 May 2014, 07:25

33. InspectorGadget80 (Posts: 6429; Member since: 26 Mar 2011)


Feel sorry for direct TV users now being OVER CHARGE by at&t

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