[opendtv] AT&T Considers DirecTV Purchase: Reports | Multichannel
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 1 May 2014 08:05:30 -0400
http://www.multichannel.com/news/distribution/att-has-interest-buying-directv-reports/374289
AT&T Considers DirecTV Purchase: Reports
With the proposed merger of the nation's two largest cable operators in the
review process, reports indicate that AT&T may be interested in purchasing the
leading DBS provider and the No. 2 U.S. distributor, DirecTV.
According to The Wall Street Journal, AT&T has made an inquiry to buy DirecTV
for some $40 billion, a union that could result in a combined entity reaching
some 26 million video subscribers. Such a combination could trail the proposed
union between Comcast and Time Warner Cable by about 3 million subs and further
consolidate the U.S. distribution industry.
DirecTV said it “doesn’t comment on speculation,” while AT&T could not be
reached for comment late on Wednesday night.
The report of a potential AT&T-DirecTV combo follows news on Monday that
Comcast has agreed to divest about 4 million customers to Charter in a trio of
deals worth about $20 billion. Comcast on Feb. 13 agreed to acquire Time Warner
Cable, in a deal worth about $69 billion that will boost the combined company’s
reach to just under 30% of the television households across the country. Should
the union past federal muster and the deals with Charter come to pass, Comcast
would have some 28 million to 29 million video subs.
A merger of AT&T and DirecTV would not only be within about 3 million video
subs of the combined Comcast-TWC, but such an entity could make for a more
formidable bundled player. The telco and the DBS company already have an extant
relationship that packages video and cell phone services, but a union would add
a high-speed component.
DirecTV added about 93,000 net new customers in the fourth quarter to finish
2013 with 20.25 million customers,
AT&T added 200,000 subs in the first quarter to conclude the period with some
5.7 million U-verse video subscribers. U-verse broadband posted a net gain of
634,000 subs to close the quarter with some 5.6 million of those customers, as
the telco racked up a seventh consecutive period of gains in excess of 600,000
high-speed subs.
Last month, there were reports that Dish Network chairman Charlie Ergen had
approached DirecTV chief Mike White about a union that could have had as many
as 34 million video subs.
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