AT&T in Talks to Purchase DirecTV For Nearly $50 Billion.
AT&T shall be joining the ranks of U.S. TV, Internet and wireless providers racing to consolidate, is current in talks to try and acquire DirectTV for a total amount of about $50 billion, according to the people who are close to these matters.
From the deal that is being discussed, management of DirecTV, the largest U.S. satellites television provider, will continue to run the company as a part of AT&T, stated the sources, while asking to remain anonymous because of how private this information is. DirecTV Cheif Executive Officer Mike White has plans of retiring after 2015.
This purchased would give AT&T a national satellite television provider to mix with their wireless, phone and high-speed broadband Internet service as competition continues to heat up. The amount of paying TV customers is rising within the U.S. due to viewer increasingly watching online videos, and this combination would keep DirectTV from being by itself with only a TV offering and not competitive Internet package.
“With DirecTV they are getting a national TV presence — they can sell TV with wireless nationwide,” said Roger Entner, an analyst with Recon Analytics, based in Dedham, Massachusetts. “AT&T has increasingly been breaking out of their 22-state landline footprint. They sell wireless, they started selling home security and they could add TV to that package.”
Another individual close to this matter stated, that the deal is more than a week away from being completed, and added the sides were still negotiating a price in which they could com in close to $95 a share, depending on how much cash or stock is in the transaction. The individual said White’s departure is also going under negotiations as well. The price could go as high as $100 a share, as stated by two sources.