'AT&T seeks to buy DirecTV'

May 1, 2014
US telecoms giant AT&T has offered to buy satellite TV firm DirecTV, in the latest move for consolidation in the television and industry, the Wall Street Journal said

US telecoms giant AT&T has offered to buy satellite TV firm DirecTV, in the latest move for consolidation in the television and industry, the Wall Street Journal said Thursday.

AT&T, which offers wireless, Internet, and cable TV services around the country, made an approach recently to DirecTV, which delivers television via rooftop satellite dishes.

The newspaper cited sources saying DirecTV was open to the offer, which could result in a deal worth $40 billion.

A merger between the two would create a potent rival to TV company Comcast, which hopes to expand its coverage with the pending takeover of Time Warner Cable.

DirecTV has about 20 million customers, making it the number-two pay-TV company in the United States.

A combination of AT&T and DirecTV would have about 26 million customers, the Journal said, behind the 30 million of a Comcast-Time Warner Cable tie-up.

DirecTV has suffered in the market in recent years because its land-line competitors like Comcast are better able to bundle high-speed Internet services with television.

At the same time, the takeoff of entertainment delivery on demand via the Internet and wireless devices like smartphones has nearly stalled growth in the traditional pay television industry overall.

The Journal said it remains a question of whether telecommunications and antitrust regulators will allow an AT&T-DirecTV deal. Many pay-TV companies have near-monopoly positions in certain markets around the country, and consolidation, some analysts say, is reducing competition.

Explore further: DirecTV, Dish sue Mass. over satellite TV tax

Related Stories

Dish, DirecTV shares rise on reported merger talk

March 26, 2014

Shares of satellite TV companies Dish and DirecTV surged in midday trading Wednesday after a report said that Dish Chairman Charlie Ergen had contacted DirecTV CEO Mike White about merging.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Apple issues update after cyber weapon captured

August 26, 2016

Apple iPhone owners on Friday were urged to install a quickly released security update after a sophisticated attack on an Emirati dissident exposed vulnerabilities targeted by cyber arms dealers.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.