Community Chat

[shesallthat]

(Reuters) - DirecTV, the No. 1 U.S. satellite TV operator, said on Sunday it has agreed to sell itself to AT&T for $48.5 billion, in the second mega-deal to shake up the U.S. television landscape this year.

The deal with Dallas-based AT&T, which has some TV and broadband services, is the latest in a string of big takeovers the wireless operator has considered. Those include an abortive bid for T-Mobile USA in 2011, as well as a potential takeover of Vodafone Plc that receded as a possibility after Comcast Corp surprised the industry this year with a $45 billion bid for Time Warner Cable Inc.

AT&T said it is offering $95 per DirecTV share in a combination of stock and cash, a 10 percent premium over Friday's closing price of $86.18. The cash portion, $28.50 per share, will be financed by cash, asset sales, financing already lined up and other "opportunistic debt market transactions."

The transaction has a total value of $67.1 billion, including DirecTV's net debt.

As part of the deal, and to facilitate regulatory approval, AT&T will sell its roughly 8 percent stake in Carlos Slim's America Movil. DirecTV has some 18 million customers throughout Latin America, including a stake in Sky Mexico.

Still, some analysts and investors have questioned why AT&T, which is facing slowing growth, would buy DirecTV at a time when U.S. satellite TV subscriptions have flattened.

The growth of web-based television services could mean that demand for satellite slows further in the coming years.

[hckynut]

Maybe this will increase my pension from my former Employer. Now I have Dish Network and wonder if they will offer us long term employees, now retired, a special deal to switch to DirecTV. Might be interesting to us pensioners but then again they have never seemed to care much about their hourly employees whether still working or in retirement.

[RibbonsRosesRainbows]

Wow that is a lot of money.

[Suziepeach]

On 5/18/2014 Hildegarde Withers said:

Hope there won't be an increase in rates.

and hope there won't be a change in our service- we are very happy with Directv.

[grandma_2_2]

On 5/18/2014 Peachysue said:

On 5/18/2014 Hildegarde Withers said:

Hope there won't be an increase in rates.

and hope there won't be a change in our service- we are very happy with Directv.

I was thinking this too. I have had excellent customer service from DirectTv and they are being bought by a company with a history of horrible customer service. Ugh! Hope they don't ruin a good thing.

[AngusandBuddhasMom]

It has to be approved in Washington and yes eventually rates will go up b/c of it.

[Suziepeach]

Some times consumers can't win for losing.

[straykatz]

On 5/19/2014 Caravaggio said:

It has to be approved in Washington and yes eventually rates will go up b/c of it.

I heard they won't raise rates for DirectTV users for 3 years if you can beleive that.

[Suziepeach]

That's big of them,

[postechnician]

Went to AT&T about my phone and offered a great bundle deal with Directv. 

With the Choice pkg.

3 mons. Free of HBO STARZ SHOWTIME & CINEMAX

4 Genie Minis

Advanced Receiver Service

Regional Sports fee

NFL SUNDAY TICKET MAX

Estimated First Bill.      $76.12

rebates.       50.00

                   297.00

                   299.00.         Plus a $200.00 gift card