facebook
twitter
search
search

AT&T to buy DirecTV for $48.5 billion

With the merger, AT&T has expanded its customer base to 20 million DirecTV subscribers.
By Kate Stanton Follow @KateStan Contact the Author   |   May 18, 2014 at 9:28 PM

NEW YORK, May 18 (UPI) -- AT&T said Sunday that it had agreed to buy DirecTV, the nation's largest satellite television operator, for $48.5 billion.

The merger will dramatically expand AT&T's customer base -- thanks to DirecTV's 20 million subscribers -- and help it compete more effectively with Comcast, which bought Time Warner Cable earlier this year.

The telecommunications giant purchased DirecTV for $95 a share in cash and AT&T stock.

"This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens -- mobile devices, TVs, laptops, cars and even airplanes," AT&T CEO Randall Stephenson said in a statement.

The Dallas-based company also said that DirecTV's "fast-growing Latin American business" played a role in the merger.

"With DirecTV they are getting a national TV presence," Roger Entner, of Recon Analytic, said of AT&T last week. "They can sell TV with wireless nationwide."

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Topics: Roger Entner
Latest Headlines
Top Stories
Shoot-from-the-hip, around corner sighting capability unveiled
Bleak outlook for oil has Russian investors pulling back
Airbus Helicopters announces factory acceptance of training aircraft
Oil prices off slightly after China stock market decline
Rhode Island to get offshore wind farm