AT&T to Acquire DirecTV for $48.5 Billion
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.
This is a unique opportunity that will redefine the video entertainment industryThis is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens — mobile devices, TVs, laptops, cars and even airplanes," said AT&T chairman and CEO Randall Stephenson in a statement. “DirecTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business."
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.
The #futureofvideo is on mobile devices, PCs, TV, cars, airplanes - & we'll deliver it by acquiring @DIRECTV http://t.co/lUmxrPRGCb
— AT&T (@ATT) May 18, 2014
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.


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