US: AT&T to buy DirecTV in $48.5 bln deal
- 10 years ago
Telecoms giant AT&T has announced plans to buy DirecTV, the number one TV satellite provider in the US, for 48.5 billion dollars (approximately 35.5 billion euros).
AT&T will be able to combine DirecTV’s huge satellite reach, of more than 35 million subscribers, with its existing phone and Internet packages.
The takeover is the latest sign that the wireless and television industries are set to converge. DirecTV has been under pressure to find a partner as more viewers go online for video.
The buyout, which has been approved by both companies’ boards, is expected to close within the next 12 months, pending regulatory review and shareholder approval.
In initial reaction to the news, DirecTV’s shares surged more than 9 percent in early morning trading in Frankfurt.
AT&T will be able to combine DirecTV’s huge satellite reach, of more than 35 million subscribers, with its existing phone and Internet packages.
The takeover is the latest sign that the wireless and television industries are set to converge. DirecTV has been under pressure to find a partner as more viewers go online for video.
The buyout, which has been approved by both companies’ boards, is expected to close within the next 12 months, pending regulatory review and shareholder approval.
In initial reaction to the news, DirecTV’s shares surged more than 9 percent in early morning trading in Frankfurt.