iWorld

AT&T to buy DirecTV for $48.5 billion

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/internet-images/2014/05/19/at%26t.jpg?itok=T__fa6eh

NEW DELHI: The American telecom giant AT&T has decided to take over pay TV brand DirecTV for $48.5 billion, but will sell its 73 million publicly listed shares from America Movil in Latin America considering the strong presence DirecTV has in the video market there.

Combined the company would have roughly 26 million video subscribers, most from the DirecTV side, and a broadband network covering 70 million customer locations. 

“This is an unique opportunity that will redefine the video entertainment industry and create a company that is able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said AT&T’s chairman and CEO Randall Stephenson in a statement.

Meanwhile, the regulator is examining the three-month old proposal by Comcast Corp for a $45 billion takeover of Time Warner.

AT&T will not pay any fee to DirecTV if they do not get approval from the regulator.

Following the deal, the telecom giant will expand high-speed broadband to 15 million customer locations, primarily in rural areas, in four years.

AT&T will acquire DirecTV in a stock-and-cash transaction for $95 per share based on last Friday closing price. DirecTV shareholders will own around 14.5 to 15.8 per cent of AT&T shares. AT&T expects cost synergies to exceed $1.6 billion on an annual run rate basis by three years after closing.

DirecTV has 20.3 million American subscribers, while AT&T serves 5.6 million video customers connected to its U-Verse network. But DirecTV’s subscriber growth has slowed in recent months as it does not have a landline network to deliver high-speed internet services to homes, unlike phone and cable TV companies.

The deal will assist DirecTV to take on the combined entity between Comcast and Time Warner Cable. If combined, AT&T-DirecTV would serve roughly 26 million pay-TV customers. That would be less than the 30 million Comcast would have if regulators approve its purchase of Time Warner Cable.

The transaction enables the combined company to offer consumer bundles that include video, high-speed broadband and mobile services using all of its sales channels — AT&T’s 2,300 retail stores and thousands of authorised dealers and agents of both companies, an AT&T spokesperson said.

For customers who only want a broadband service and may choose to use video through an over-the-top (OTT) service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6 Mbps (where feasible) in areas where AT&T offers wireline IP broadband service at guaranteed prices for three years.

AT&T will continue to offer DirecTV service on a stand-alone basis at nationwide package prices for at least three years after closing.

In 2015, AT&T will bid at least $9 billion provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2×10 MHz nationwide spectrum footprint. 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/19/netflix.jpg?itok=DyZRnWnL
Introducing Mobile Previews

One of the best ways to know if you’ll like a new series or movie is to watch a quick trailer. Today, we are excited to introduce mobile previews (launching today on iOS and coming soon to Android) to the mobile experience. Mobile previews present members with a fun, simple, and easy way to learn...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/19/fubo.jpg?itok=84PfFjqV
FuboTV raises $75 million from Fox, AMC Networks and Sky

Days after ESPN launched its new streaming service ESPN+, FuboTV, a three-year old streaming TV service for sports fans, is announcing the close of $75 million in Series D funding. The round included new investor AMC Networks and existing investors 21st Century Fox, Luminari Capital, Northzone,...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/Facebook.jpg?itok=5GmDEjrg
Facebook's Q1 ad spend on 4C grows by 62%

MUMBAI: Marketing technology company 4C, in its latest report, reveals that spend across major social and mobile platforms in the first quarter of 2018 increased significantly year-on-year (YoY) with the greatest revenue growth on 4C witnessed by Snapchat (234 per cent) and Instagram (136 per cent...

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/Manav-Seth.jpg?itok=VphRdXtm
ALTBalaji's Sethi reaffirms faith in originals

MUMBAI: Among the plethora of over-the-top (OTT) players that sprung up in the Indian market, we have Balaji Telefilms’ ALTBalaji, which is striving to understand content through the eyes of its customers. The platform takes customer feedback seriously to predict which content will work. After...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/17/shilpa.jpg?itok=68BR5LYI
Shilpa Shetty makes digital debut with Amazon dating show

MUMBAI: In order to build a strong footprint in India, Amazon Prime Video has announced a new show Hear Me. Love Me around the concept of blind dating.  Bollywood actress and fitness guru Shilpa Shetty will host the show marking her debut on a digital platform.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/17/Reed_Hastings800.jpg?itok=ssfIq7Py
Netflix beats earnings forecasts riding on global user additions

MUMBAI: Exceeding user addition forecasts, Netflix’s first quarter (Q1) earnings were in line with expectations while revenue bettered estimates.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/16/India_ISP_roundup.jpg?itok=P2NR0_yt
Jio shifts focus to wired broadband

After bringing about a massive change in the usage of wireless internet and market dynamics, Reliance Jio is looking at the broadband or wired internet sector. According to a media report, Jio is working at full steam to launch broadband in homes towards the end of this year.

iWorld Broadband
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/16/isco_0.jpg?itok=YJYnJOcQ
LaLiga weekend brings new record for Barcelona and mixed feelings for Torres and Isco

Mumbai: Barcelona set another record and took a further step towards the 2017/18 title in a LaLiga weekend which also brought bittersweet moments for Fernando Torres of Atletico Madrid and Isco of Real Madrid.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/16/quit_0.jpg?itok=a2D9YOs6
The Quint India Selects Brightcove For Its Digital-First News Platform

MUMBAI: Brightcove (NASDAQ: BCOV), the leading provider of cloud services for video, today announced that its video platform has been selected by The Quint, one of India’s fastest growing news publishers, to manage and stream video content on its website, mobile apps and across social media...

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories