AT&T Plans to Buy DirecTV for $48.5 Billion

Discussion in 'Android News' started by dgstorm, May 19, 2014.

  1. dgstorm

    dgstorm Editor in Chief
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    Big business news hit the web early this morning. It's not directly Android related, but it has folks in the mobile industry scratching their heads so it is worth sharing. AT&T and DirecTV began the process for a buyout. AT&T plans to pay $95 per share for DirecTV, which amounts to a whopping $48.5 Billion dollars. The resulting amalgamation will amount to the second largest US Pay TV company. The Comcast-Time Warner Cable merger will still be number one, but this will give AT&T a nice fighting edge to compete with that conglomerate.

    This deal could get shot down by regulators though. Here's a quote with some of the details,

    Of course, AT&T is going to make their case as to why this deal should proceed. Here's another quote with AT&T's assessment,

    The reason this is indirectly relevant to the mobile sector is because this merger is missing the "mashed potatoes" of the meal. If AT&T wanted to shore up their entire telecommunications infrastructure and marketability, then it makes more sense to buy up DISH Network. This is because DISH has a large swath of wireless spectrum which could be very useful to AT&T's wireless mobile division, but DirecTV doesn't have any wireless spectrum.

    Some industry pundits are speculating this is precisely why AT&T chose DirecTV over DISH. They are banking on this fact to help them pass regulatory scrutiny. The question remains though... Why bother spending that much cash to acquire holdings in the satellite industry, when most analysts see it as a dying breed?

    Source: Yahoo