On Sunday AT&T agreed to purchase the satellite television operator DirectTV for $48.5 billion. In a conference call to investors, the multinational telecommunications company revealed that it would purchase DirectTV in a stock-and-cash transaction for $95 per share, the stock’s closing price for the satellite company this past Friday.
Commenting on the impending deal, AT&T CEO Randall Stephenson said, “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.”
“DirectTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business,” Stephenson continued. “DirectTV is a great fit with AT&T and together we’ll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video, and broadband services.”
The acquisition of DirectTV would bring with it the company’s 20.3 million satellite TV customers to bolster AT&T’s 5.7 million TV customers. Both companies have very little overlap which means that AT&T's access to consumers would significantly grow in the United States.
The deal is the latest media consolidation for this year as Comcast plans to purchase Time Warner Cable. AT&T's purchase will need to be approved by the government before they can move forward.