AT&T readying $50 billion purchase for DirecTV, could be announced next week

[Guest Justin Herrick]

 

Thought the possible Comcast-Time Warner Cable merger was big? AT&T is reportedly readying a $50 billion check to acquire DirecTV. That is $5 billion more than the aforementioned merger. The deal would be an absolute win for AT&T and forge its way into new territory.

 

Adding DirecTV to its portfolio would move the company higher up in the ranks of bundling TV, phone, and internet services. While AT&T does have U-Verse for TV, it is nothing compared to DirecTV’s offering to more than 30 million subscribers. Verizon, AT&T’s main wireless competitor, has FiOS expanding across the country. In a way, Sprint almost got involved with TV when Dish Network actively sought to purchase the carrier. Eventually, SoftBank won and is continuing to eye T-Mobile. But AT&T having DirecTV would advance their foot in the door and put up a fight with Comcast and Time Warner Cable.

 

If everything goes through, such as government approval, DirecTV would continue to function as its own unit. DirecTV CEO Mike White plans on retiring after 2015; therefore, this acquisition may actual happen just as he is leaving the company and a new era would be ushered in.

 

Let us know your thoughts on this mega-deal (or if you even think it will go through).

 

Source: Bloomberg

 

 

Come comment on this article: AT&T readying $50 billion purchase for DirecTV, could be announced next week

Visit

TalkAndroid for Android news, Android guides, and much more!

 

 

News via TalkAndroid