AT&T in talks to buy DirecTV for $50 billion

The two companies are close agreeing on a deal and should close it within the next two months.
By Ananth Baliga   |   May 13, 2014 at 10:21 AM   |   Comments

Leer en Español
DALLAS, May 13 (UPI) -- AT&T is in talks to buy satellite TV provider DirecTV for a reported $50 billion, expanding the wireless, phone and high-speed broadband provider's services to satellite TV.

The two companies are discussing a deal that would involve a mixture of cash and AT&T stock but that would have DirecTV's management run the company as a unit of AT&T. According to people close to the matter, an agreement could be reached in the next two weeks with the final price hovering in the low- to mid-nineties per DirecTV share.

A $95 per share deal would value DirecTV at nearly $48 billion.

AT&T are expected to pay for the deal with shares, which would help AT&T limit their borrowings and maintain their credit rating.

Satellite TV subscriptions have been peaking in the U.S. because more people are watching TV online. By combining DirecTV with its wireless and broadband services, AT&T will seek to offer a competitive package.

"With DirecTV they are getting a national TV presence -- they can sell TV with wireless nationwide," said Roger Entner, an analyst with Recon Analytics, based in Dedham, Massachusetts.

DirecTV has been expanding in Latin America as well and is also generating higher monthly bills from U.S. customers.

Follow @antbaliga and @UPI on Twitter.
Contact the Author
Topics: Roger Entner
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
Tony Hayward: Kurdish oil sector open for business Tony Hayward: Kurdish oil sector open for business
Textron's G-CLAW on target in live-fire demonstration Textron's G-CLAW on target in live-fire demonstration
Pay up, Gazprom tells Ukraine Pay up, Gazprom tells Ukraine
$3 gas could make a comeback $3 gas could make a comeback
Starbucks testing smaller Frappuccinos Starbucks testing smaller Frappuccinos
Trending News