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/2017/05/27/alt.jpg?itok=LHRj-Sj0
ALTBalaji to launch its first Tamil show 'Maya Thirrai'

ALTBalaji has announced the release of its first Tamil show- Maya Thirrai, with its 16 episodes available on ALTBalaji platform. To mark ALTBalaji’s entry into Tamil regional entertainment space, Ekta Kapoor brought together distinguished team of director Kaushik Narasimhan and producer Kutty...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/27/Sunil%20Lulla%20Eros_0.jpg?itok=RifqFLMB
Eros profit grows despite lesser releases, demonetization

BENGALURU: The Sunil Lulla led Eros International Media Limited (Eros) reported 7.9 percent growth of consolidated profit after tax attributable (PAT) to Eros shareholders for the year ended 31 March 2017 (FY-17, current year, fiscal) despite releasing lesser films and demonetisation as compared to...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/RS%20Sharma-800x800.jpg?itok=oJoKtG0s
Telcos can't discriminate tariffs in same category

MUMBAI: Telecom regulator TRAI has directed telecom operators to stop providing discriminatory tariffs to the subscribers of the same category and report all plans to the sector watchdog within seven days of their launch. The decision, signed by KaushaI Kishore, advisor (F&EA), comes soon after...

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/sameer-nair-800X800.jpg?itok=I3q6fOtN
ALT Balaji & the Balaji Telefilms story, courtesy Sameer Nair

MUMBAI: The ALT key on computer keyboards is quite a crucial one. As is recently launched OTT/SVOD service ALT Balaji for content producer Balaji Telefilms Ltd (BTL). CEO and broadcast veteran Sameer Nair is quite sanguine that the app is well on course to hit breakeven point as planned, but...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/amazon.jpg?itok=_TzYHpwY
Amazon Prime Video to entertain kids with new shows and seasons

A summer blockbuster line up of four brand new shows and seasons named named ‘Atchoo’, ‘ Munki and Trunk’ and ‘Zak Storm’, in addition to ‘Astro Forice’ which has megastar Amitabh Bachchan in an animated superhero avatar are to commence on Amazon Prime Video this summer.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/alt.jpg?itok=1LgwBOOb
Axis Capital appointed as banker for ALT Digital Media

The Ekta Kapoor led Balaji Telefilms Limited (BTL) has announced Axis Capital as the banker for investments into its digital business ALTBalaji thru BTL’s wholly owned subsidiary ALT Digital Media Entertainment Limited.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/Tanay%20Desai%20and%20Vinay%20Pilla.jpg?itok=8jVOL9dt
Dekkho makes big-screen debut with Amazon fire TV stick

MUMBAI: The online video streaming Dekkho has partnered with Amazon to make its big-screen debut and provide its content on Amazon Fire TV Stick. Dekkho will be one of the featured apps on the streaming device, allowing users to access its entire content library of movies and videos across genres...

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/go-news.jpg?itok=aQquzezA
GoNews becomes NBA India’s first digital member

NEW DELHI: One of India’s youngest digital news channel GoNews has become the first digital member of News Broadcasters Association (NBA) of India, which has been under pressure in recent times with organization members accusing each of alleged malpractices and a new news channel boss dubbing it a...

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/act.jpg?itok=KXa3kBcy
ACT leads in wired subs adds, Jiojuggernaut marches on

Atria Convergence Technologies Pvt. Ltd (ACT) leads in wired broadband internet subscribers additions in calendar year 2017 (CY-17) until 31 March 2017 (Mar-17) as per data released by the Telecom Regulatory Authority of India (TRAI).

iWorld Broadband

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories