Source: AT&T And DirecTV In Advanced Talks For An Acquisition Deal
Acsilyn Miyazaki | | May 13, 2014 02:58 AM EDT |
(Photo : Reuters) An AT&T corporate logo is shown on a building in San Diego, California.
An acquisition deal is said to be progressing between AT&T Inc. and DirecTV valued at US$100 per share.
The source familiar with the matter told Reuters on Monday that AT&T plans to buy DirecTV for around US$50 billion.
AT&T aims to expand its video offerings and avoid being left out in the industry where acquisitions have been hitting the pay-TV industry. The company offers its pay-TV services through U-Verse brand, wherein its market reach is limited. If the acquisition deal is pushes through, AT&T would widen its foothold in the United States.
Like Us on Facebook
Both companies are said to be in advanced talks and aiming for an announcement within the next two weeks. AT&T and DirecTV are currently working out the final terms of the deal including whether a break-up fee will take place or not, according to a source familiar with the deal who spoke on condition of anonymity as the matter is private in nature.
The source also added that the price of the deal is not yet final and that the terms could still change.
AT&T and satellite TV provider DirecTV declined to give their statements regarding the acquisition deal.
Meanwhile, Bloomberg News said that AT&T’s terms in the planned acquisition of DirecTV also included retaining the latter’s management team to run the satellite TV provider. Once the deal pushes through, DirecTV would become a business arm of AT&T.
The Wall Street Journal also reported that a deal would take place in the next two weeks, similar to the statement issued by one source familiar with the talks.
The shares of DirecTV increased six percent to $92.50 during the extended trading on Monday.
Reuters also reported last week that DirecTV has been working with Goldman Sachs Group to examine possible mergers following a recent bid to take over the company.
TagsAT&T, DirecTV, The Wall Street Journal, Reuters, Bloomberg News
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?