AT&T Aims For TV's Future With $48.5B DirecTV Deal

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AT&T Aims For TV's Future With $48.5B DirecTV Deal

AT&T Aims For TV's Future With $48.5B DirecTV Deal
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AT&T Aims For TV's Future With $48.5B DirecTV Deal

by Wochit 1:02 mins

AT&T Aims For TV's Future With $48.5B DirecTV Deal

by Wochit 1:02 mins

Priming itself for the age of Internet-delivered video, AT&T Inc. said it would buy DirecTV for $48.5 billion in cash and stock, or $95 per share. While DirecTV doesn't help the telecom company compete in the online video space immediately, cost savings from the merger and the extra cash flow will improve its ability to compete with the cable giant that would be formed by Comcast Corp.'s proposed $45 billion takeover of Time Warner Cable. With 5.7 million U-verse TV customers and 20.3 million DirecTV customers in the U.S., the combined AT&T-DirecTV would serve 26 million. That would make it the second-largest pay TV operator behind a combined Comcast-Time Warner Cable, which would serve 30 million under a $45 billion merger proposed in February.

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