AT&T Buys DirecTV for $48.5 Billion USD in Stock
Subject: General Tech | May 19, 2014 - 08:02 PM | Scott Michaud
Tagged: direcTV, att, AT&T
That silly AT&T is now acquiring companies other than the ones they shed off during the 1974 antitrust lawsuit. This time, it intends to acquire DirecTV in a deal valued at $48.5 billion USD, in stock. All said and done, the total transaction is valued at $67.1 billion. Currently, DirecTV sits at a market cap of 42.77 billion USD and the stock is trading in the range of 84 to 85 dollars per share. In this deal, shareholders will receive $95 per share, about 30% in cash and 70% in AT&T stock.
Owning the globe... trademark.
The deal also claims to have several benefits for consumers. AT&T pledges to add 15 million customer locations, mostly rural, with fiber and wireless local loop (microwave). They also pledge to follow FCC's Open Internet Order from 2010, for at least three years after closing.
Three years of Net Neutrality, fun.
Seriously, none of that has anything to do with DirecTV and it should be enforced, anyway. It is nice that Net Neutrality has become a buzz word, mostly in terms of people becoming aware to it, but an action would be significantly more helpful. Remember that we, at PC Perspective, host our own video streaming service for our podcasts and live events. We rely on our traffic reaching our audience.
But, of course, none of that has anything to do with DirecTV either. It is possible that they could give concessions to help the acquisition go through and, honestly, I am not too against this purchase, if viewed in isolation. Let's just hope that, like their split-up compromise, they don't immediately start undoing it when they think no-one's watching.