AT&T Buys DirecTV for US $50 Billion
Marcel Woo | | May 19, 2014 09:39 AM EDT |
AT&T has officially agreed to buy DirecTV for nearly US $50 billion, ending months of negotiations that will boost the telecom giant's customer base and raise its ability to compete with Comcast-Time Warner Media, US press reported on Monday.
The mammoth merger, approved by the board of directors of the two companies on Sunday, will launch the Dallas-based AT&T deeper into pay TV and will further increase its customers by offering wireless, voice, data, TV and home security.
Like Us on Facebook
It was the second time this year that two telecom giants in the United States have announced they are merging. In February, Comcast and Time Warner Cable agreed to merge, in what industry analysts believe was born out of the telecom companies' desire to control content and delivery and amass customers.
AT&T, which announced that it will buy DirecTV for US $95 per share with the total transaction's value reaching about US $67.1 billion, if DirecTv's debt is included, will be able to increase its ability to compete against Comcast, the current number one in the industry.
AT&T said its merger with DirecTV could improve its Internet service by sending its existing TV subscribers into video over satellite service, which, as a result, will free up bandwidth on its telecommunications network.
AT&T has 5.7 million U-verse TV subscribers while DirecTV has 20.3 million customers in the United States. That means the merger will serve around 26 million customers, making AT&T-DirecTV the second-largest pay TV operator behind Comcast-Time Warner, which will serve 30 million customers when the merger is approved by regulators.
The companies expect the deal to close within 12 months following a government review. AT&T, however could face regulatory hurdle before the US $50-billion deal is approved as consumer groups immediately criticized the deal. Unions said the industry currently needs more competition and not more mergers.
©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?