iWorld

AT&T to buy DirecTV for $48.5 billion

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/2016/08/26/Untitled-1_2.jpg?itok=TczQE88M
BSE seeks & gets clarification on Eros Now-RelianceJio deal

The Bombay Stock Exchange (BSE) today sought clarification from Eros International Media Ltd with reference to news relating to Eros Now’s integration deal with Reliance Jio.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/26/CqicBZ6XYAEkgd9_0.jpg?itok=WHqBbVqu
SonyLIV encourages the Rio Indian contingent with #WohHaareNahin

NEW DELHI: Success is a sheer refusal to accept failure, a dogged determination to break free from the shackles of one’s circumstances and a willingness to rise above oneself in pursuit of one’s dreams.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/25/OTT.jpg?itok=XPO5_9PU
Amagi launches live linear OTT playout platform on cloudport

MUMBAI: Amagi announced TV networks and content owners can now launch live and linear OTT channels on the cloud and operate a unified platform for linear, catch up and video-on-demand (VOD) TV without any hardware.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/25/Vikalp-Kumar.jpg?itok=FpTk9zbj
Last Minute Keys teams up with RippleDME for Online Marketing

NEW DELHI. Mobile-based marketplace solution that enables hotel bookings, Last Minute Keys has teamed up with RippleDME for online marketing.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/26/Untitled-1_4.jpg?itok=6lqLSwqa
Naidu urges officers to take to modern technology in the age of social media

In a meet that was meant to convey sarkaari farmaan as well as admonish, Information & Broadcasting Minister M Venkaiah Naidu today told his officers today that the focus of communication strategy should be to incorporate innovative and out of the box ideas in order to keep pace with the...

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/24/Kyle%20Okamoto.jpg?itok=Oao6Gq0Y
"We expect to grow with the OTT ecosystem in India" - Verizon Digital's Kyle Okamoto

The $132.1 billion US telecom giant Verizon Communications provides communications and entertainment services over mobile broadband and the US’ premiere all-fiber network, and delivers integrated business solutions to customers worldwide. More than that that it operates America’s most reliable...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/23/Untitled-1_14.jpg?itok=HwPdCW6c
YuppTV to exclusively air the USA T-20 series

Cricket lovers in the states, Canada and Caribbean Islands have a reason to rejoice. Leading OTT player for the South-Asian content, YuppTV has secured the exclusive broadcasting rights of the T20 matches to be held between team India and the current T20 world champions, West Indies.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/23/Untitled-1_2.jpg?itok=8TnmKX9m
Ditto TV sees more demand for regional content

MUMBAI: With an aim to be the default app on every internet enabled smartphone in India for content delivery, Zee’s dittoTV seems to have got its marketing pitch correct with #BeeskaTV and #DeshkaTV campaign. Poised to clock an annual revenue of Rs 150 crore (according to the statements in its...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/24/hungama%20connet%20brondband.jpg?itok=uvfHBTZ_
Hungama partners with Videocon's Connect Broadband

India's leading on-demand digital entertainment destination launched an exclusive entertainment service for Connect Broadband.

iWorld Broadband

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories