AT&T just announced that it plants to buy DirectTV for 48.5 Billion!
AT&T Inc plans to pay $48.5 billion to buy DirecTV, in the latest sign that the wireless industry and the U.S. television market are set to converge as customers consume more video on their mobile devices.
I think they may possibly be following in the steps of Comcast / Time Warner, although I'm not sure if either merger will go though due to regulatory concerns. That is a lot of people impacted by a merger and I'm not quite sure for the better. Although I am currently both a DirectTV and AT&T customer so maybe it'll be buisness as unusual afterwards.
"It gives us the parts to fulfill a vision we have had for a couple of years, that is, the opportunity and the ability to take premium content and deliver premium content over multiple points for the customer, whether it be through a smartphone, through a tablet, or television or laptop," said AT&T CEO Randall Stephenson, speaking on a conference call.
One real thing that DirectTV does have is its exclusive NFL Sunday ticket package.
So monkeys, what do you think?
http://www.reuters.com/article/2014/05/19/us-directv-att-idUSBREA4B0W22…
nice
What he really meant to say, was to deliver semi-premium content across multiple devices with throttled usage should you have the audacity to actually use them.
This strikes me as elimination via consolidation in an industry where there are fewer differentiating factors to compete on so might as well scale up and corner as much of the market as possible.
complete agree with Addinator. start pissing all over your market and/or start buying the other companies.
additionally, regulators are getting worried that media is gradually coming under the fold of several behemoth. we know where that can lead.
Pretty interesting group of advisors on this deal according to DealBook:
AT&T – Lazard – Sullivan & Cromwell – Crowell & Moring – Arnold & Porter – Sidley Austin – Kellogg, Huber, Hansen, Todd, Evans & Figel – Gibson, Dunn & Crutcher
DirecTV – Goldman Sachs – Bank of America Merrill Lynch – Weil, Gotshal & Manges – Jones Day – Harris, Wiltshire & Grannis
It seems that a ton of other firms are locked up in the Comcast-TWC Deal:
Comcast: JPMorgan Chase, Barclays, Paul J. Taubman by himself, and the law firms Davis Polk & Wardwell and Willkie Farr & Gallagher.
TWC: Morgan Stanley, Allen & Company, Citigroup, Centerview Partners and the law firms Paul, Weiss, Rifkind, Wharton & Garrison and Skadden, Arps, Slate, Meagher & Flom.
I think ATT is both too late and to early to the party. I think this merger is likely to be shot down if the Comcast TWC merger is approved. This could also be a move by ATT to attempt to block the Comcast TWC deal by pissing off the regulators and just having them tell everyone to go back to their corners. The public is pissed off about the net neutrality rules that are being made, albeit for all of the wrong reasons and most of them actual support what they say they don't want. But that's a different discussion.
Faber seems to be reporting that AT&T can walk if DirecTV isn't able to renew rights to NFL Sunday Ticket.
Overall, it'll be interesting to see if it gets through regulatory scrutiny. It's a huge consolidation. I think they will be hoping for TWC to set the precedent and then get the T deal to go through right after - not sure if that would happen. I'm not sure either will pass, though - maybe some more concessions would help?
Remember AT&T is the same company that sold off their Wireless company and then realized "We've made a HUGE mistake!"
Guys, serious question coming from me for once. I have a close friend who is unemployed and needs a job, got an offer from directv doing mobile app stuff before merger news. Should they take the job and immediately start looking for a new job, as the chance of downsizing would be high after a take over? Thoughts? Thanks guys!
I would take it. as Job > No Job. But you never know how long that job might last, but he should take it and start looking for another.
Wonder what consulting firms are on this.
kaan and associates
Some monster deals lately. M&A is back!??!
Time to go long VZ
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