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11/02/2024 03:30:37 pm

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Source: AT&T And DirecTV In Advanced Talks For An Acquisition Deal

AT&T

(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.

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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.

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