AT&T has announced that it will acquire satellite broadcaster DirecTV for about $48.5 billion. The boards of both companies have approved the deal, according to a joint statement released by the two companies.

Based on details included in the announcement, the purchase will enable AT&T to cover 70 million more customer locations through broadband expansion, and will allow it to offer a more attractive "bundle" of services to entice customers away from subscribing to cable TV.

“ 

DirecTV has more than 18 million subscribers in Latin America, and the Latin American middle class is the company's fastest-growing customer segment. The company also has exclusive TV rights to NFL Sunday Ticket, which provides subscribers with access to every out-of-market game, on multiple devices. The company also owns Root Sports Networks and has stakes in the Game Show Network, MLB Network, NHL Network and the Sundance Channel.

Under the terms of the agreement, DirecTV shareholders will receive $95 per share, which works out to a total equity value of $48.5 billion, and a total transaction value of $67.1 billion when including DirecTV's existing debt.

In announcing the deal, AT&T and DirecTV said that DirecTV's service will remain available in unbundled form for at least three years after the deal closes.