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Summary:

Last week it was reported that AT&T would make a run for DirecTV’s satellite television business. On Sunday, it did, offering $95 a share for the company.

Directv_new

We’ve been wondering since 2009 if AT&T would ever purchase DirecTV and we don’t have to wonder any longer. In a press release on Sunday the U.S. carrier announced its deal to pay $95 a share for DirecTV, which works out to around $48.5 billion.

AT&T says this will eventually boost its broadband footprint to 70 million locations and help the carrier become a content destination regardless of where consumers watch:

“The combined company will be a content distribution leader across mobile, video and broadband platforms. This distribution scale will position the company to better meet consumers’ future viewing and programming preferences, whether traditional pay TV, on-demand video services like Netflix or Hulu streamed over a broadband connection (mobile or fixed) or a combination of viewing preferences  on any screen.”

AT&T’s release was also quick to note that DirecTV has the exclusive NFL Sunday Ticket programming for football games. Verizon currently offers live football coverage on its NFL Mobile app, so it will be interesting if football comes to more mobile devices as a result.

Football is only a 17-week season, though, so the bigger picture for this deal may be for AT&T to gain more rural broadband customers outside of its U-Verse service. Now it’s up to regulators to approve the deal that the boards of AT&T and DirecTV have agreed upon.

  1. How do they even possibly finance this? Isn’t this like the biggest world record transaction of a buyout in business history?

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    1. A Ch0w, sneeze Monday, May 19, 2014

      Verizon bought out Vodafone for 150bn USD I believe.

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      1. Thanks for that. So many of these mergers come and go with other world events swirling in, I cannot keep track. That’s an inordinately large one as well. $150B

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  2. I started suggesting Apple buy DirecTV when they could have done it for <$30B. And used all that leverage for content.

    And we all would have benefitted.

    As a DirecTV subscriber since their 3rd month on the street – 20 years ago – I've already started re-examining alternatives. Straight up cord-cutting doesn't work outside truly big cities. But, I have no doubt competitors will enact poaching campaigns if and when AT&T overlays their style of market stupidity on top of DirecTV's traditional tech leadership in Sat TV.

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  3. Tim Napoleon Monday, May 19, 2014

    Huge blow to California and a big win for Texas if they relocate to AT&T HQ.

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  4. Steffen Jobbs Monday, May 19, 2014

    Now this is what I consider a blockbuster acquisition. I don’t know why the internet was going nuts over Apple acquiring Beats for $3.2 billion which is almost nothing. $48.5 billion is some serious amount of cash. That’s the type of deal I’d like to see Apple make. Then I could understand if the pundits started complaining or criticizing the deal. Apple’s Beats acquisition is not even close to this AT&T-DirectTV merger. It’s awesome for shareholders. Wall Street and know-it-all analysts can really sink its teeth into this.

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  5. Adios DirectTV – If it had been anyone else I may have given you a chance.

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