AT&T Agrees to Buy DirecTV for $48.5 Billion to Add TV Users
Posted in: UncategorizedAT&T has agreed to acquire DirecTV, the largest U.S. satellite-TV provider, for $48.5 billion, adding video subscribers as the biggest competitors in the pay-TV industry bulk up.
AT&T will pay $95 for each share of DirecTV, with $28.50 being paid in cash and the equivalent of $66.50 paid in stock, the companies said Sunday in a statement. That’s a 10% premium to DirecTV’s closing price on Friday. The agreement was approved by the boards of both companies and is expected to close within 12 months. To help with regulatory approval in Latin America, AT&T said it plans to divest its 8% stake in America Movil SAB.
The purchase gives AT&T a national satellite-TV provider to combine with its U.S. wireless service and phone and high-speed internet offerings. AT&T CEO Randall Stephenson is using deals to get bigger as competitors Comcast and Time Warner Cable plan their own merger and as consolidation accelerates across the communications industry.
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