At&t Buys Directv

Wolf

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AT&T buys DirecTV for $48.5 billion

AT&T agreed Sunday to buy DirecTV for about $48.5 billion in yet another mammoth deal in the pay-TV space this year that would immediately boost the telecom giant's customer base at a time of confounding industry challenges.

The merger, which both boards approved Sunday, is the latest evidence of TV-industry consolidation, one born of telecommunications companies' desire to amass customers and control content and delivery. With streaming and wireless technology upending the industry, cable and satellite service providers are rushing to add product options while boosting revenue per customer to please shareholders.

In the deal, AT&T would pay DirecTV shareholders $95 per share. Including DirecTV's debt, the total transaction's value is about $67.1 billion.

"Customers will be able to get wireless, voice, data, TV and home security from the same company nationwide," says Roger Entner, an analyst at Recon Analytics. "It allows (AT&T) to grow the share of consumers' spending on telecom."
 

blyons200

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Hmmmm.......... If Uverse carries Sunday ticket I may switch off the satellite. I do have uverse internet and my phone is AT&T. Probably end up costing more in the end anyway.
 

Wolf

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FCC meets with AT&T and DirecTV as merger nears approval | The Verge

Top executives from AT&T and DirecTV met with FCC officials at the agency's headquarters in Washington yesterday, according to CNN. The meeting comes as a big merger between the two is said to be nearing completion and a stamp of approval from regulators.

During yesterday's exchange, the FCC and AT&T / DirecTV reportedly went over conditions that the combined company will have to honor for the transaction to go through. One of those is abiding by the FCC's new net neutrality framework, something AT&T is apparently willing to do — even as it sues the commission over those very rules. Other than that, CNN says that regulators don't intend to stick AT&T with "onerous" or inconvenient terms.

It's been over a year since AT&T and DirecTV first announced their plan to join up, and although the deal has seen a very lengthy review process, it has avoided the fierce scrutiny and overwhelmingly negative public feedback that proved too much for Comcast's Time Warner Cable takeover to overcome. Comparatively, AT&T and DirecTV have had an easy go of it so far.

This deal also sets important precedent for the rumored merger between Dish and T-Mobile US. Fundamentally it'd be a very similar situation that would end up pairing a phone company with a satellite company that's always wanted to be something more. Seeing the government sign off on AT&T and DirecTV's merger should give Dish plenty of confidence to officially launch its pursuit of John Legere's T-Mobile.
 

HecticArt

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memebag

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I'm also opposed to this merger. Content distributors see themselves becoming commodities without some content creation aspect to differentiate them. They are right, but that future, of giant vertically integrated content creator-distributors, is going to suck for the consumer.
 
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scotchandcigar

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that future, of giant vertically integrated content creator-distributors, is going to suck for the consumer.
Isn't that what Netflix and Amazon are? And how about the availability of streaming HBO and Showtime? How is this different than those?
 

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Isn't that what Netflix and Amazon are? And how about the availability of streaming HBO and Showtime? How is this different than those?
Netflix and Amazon don't own the wires or wireless spectrum licenses needed to bring content to the consumer. They aren't content distributors, they are content creators and curators.

HBO is owned by WarnerMedia, which is owned by AT&T. AT&T could, if it wanted to, make HBO an exclusive offering to AT&T subscribers. It can also offer free or discounted HBO content as a benefit of subscribing to AT&T.

Imagine a future where the finite wireless spectrum is clogged with competing content creator/distributors. To watch the new "Star Trek" content you can subscribe to National Amusements Wireless, or pay out the ass. To watch the new "Star Wars" or Marvel content, you can subscribe to Disney Wireless, or pay out the ass. To watch the new "Game of Thrones" spinoffs, you can subscribe to AT&T, or pay out the ass.

The distributors want to use content to avoid becoming commodities. Commodities are cheap. This will allow them to charge consumers more to use the frequencies consumers (as the real owners of the radio spectrum) licensed them in the first place.
 

Wolf

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I have AT&T and DirecTV Now. Part of my package deals have gone up to pay for this merger. But AT&T does offer it's customers free HBO if you have the unlimited plan. So it's nice to watch Game of Thrones.

I plan on subscribing to the new Disney+ streaming network to watch all of the Star Wars, Marvel and other future projects content.

I'll never subscribe to CBS All Access just for Star Trek.
 

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We've been down this road before in the US. Before United States v Paramount Pictures, Inc. in 1948, movie studios owned movie theaters. They created the content and distributed it. They were sued and found guilty of violating antitrust laws, and forced to split content creation from content distribution.
 

Wolf

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scotchandcigar

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Also I'll reboot The Sopranos for you guys and Sex & The City for Scotch. :p
It'll be tough having some of those Sopranos characters put back together.

The only reason you think I'm an S&C fan is because of the acronym. :eek:
 
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Wolf

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It'll be tough having some of those Sopranos characters put back together.

The only reason you think I'm an S&C fan is because of the acronym. :eek:
That's why rebooting the Sopranos would be easier, some have already passed away in real life.

You caught that Sex & The City aka Scotch & The Cigar. That can be your new nickname around here. :laugh: