At&t Buys Directv

Discussion in 'Mobile & Wireless' started by Wolf, May 19, 2014.

  1. Wolf

    Wolf The Lone Wolf

    AT&T buys DirecTV for $48.5 billion

    AT&T agreed Sunday to buy DirecTV for about $48.5 billion in yet another mammoth deal in the pay-TV space this year that would immediately boost the telecom giant's customer base at a time of confounding industry challenges.

    The merger, which both boards approved Sunday, is the latest evidence of TV-industry consolidation, one born of telecommunications companies' desire to amass customers and control content and delivery. With streaming and wireless technology upending the industry, cable and satellite service providers are rushing to add product options while boosting revenue per customer to please shareholders.

    In the deal, AT&T would pay DirecTV shareholders $95 per share. Including DirecTV's debt, the total transaction's value is about $67.1 billion.

    "Customers will be able to get wireless, voice, data, TV and home security from the same company nationwide," says Roger Entner, an analyst at Recon Analytics. "It allows (AT&T) to grow the share of consumers' spending on telecom."
     
  2. semipenguin

    semipenguin Cheeseburger Connoisseur

  3. blyons200

    blyons200 These pretzels are making me thirsty.

    Hmmmm.......... If Uverse carries Sunday ticket I may switch off the satellite. I do have uverse internet and my phone is AT&T. Probably end up costing more in the end anyway.
     
  4. Wolf

    Wolf The Lone Wolf

    I have AT&T so looks like I can finally watch football games on my iPad, as long the package deal isn't bad.
     
  5. Wolf

    Wolf The Lone Wolf

    FCC meets with AT&T and DirecTV as merger nears approval | The Verge

    Top executives from AT&T and DirecTV met with FCC officials at the agency's headquarters in Washington yesterday, according to CNN. The meeting comes as a big merger between the two is said to be nearing completion and a stamp of approval from regulators.

    During yesterday's exchange, the FCC and AT&T / DirecTV reportedly went over conditions that the combined company will have to honor for the transaction to go through. One of those is abiding by the FCC's new net neutrality framework, something AT&T is apparently willing to do — even as it sues the commission over those very rules. Other than that, CNN says that regulators don't intend to stick AT&T with "onerous" or inconvenient terms.

    It's been over a year since AT&T and DirecTV first announced their plan to join up, and although the deal has seen a very lengthy review process, it has avoided the fierce scrutiny and overwhelmingly negative public feedback that proved too much for Comcast's Time Warner Cable takeover to overcome. Comparatively, AT&T and DirecTV have had an easy go of it so far.

    This deal also sets important precedent for the rumored merger between Dish and T-Mobile US. Fundamentally it'd be a very similar situation that would end up pairing a phone company with a satellite company that's always wanted to be something more. Seeing the government sign off on AT&T and DirecTV's merger should give Dish plenty of confidence to officially launch its pursuit of John Legere's T-Mobile.
     
  6. Wolf

    Wolf The Lone Wolf

  7. HecticArt

    HecticArt Administrator

    Looking at ditching my cable company. As long as Verizion doesn't buy them, I'm curious.
     
  8. Channel98

    Channel98 Don't yell or hit.

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  9. HecticArt

    HecticArt Administrator

    I know that this post was before my comment in the politics thread, but as a note to everybody, please avoid the political comments that may put one side against the other.
     
  10. memebag

    memebag Top Brass, ADVP

    I'm also opposed to this merger. Content distributors see themselves becoming commodities without some content creation aspect to differentiate them. They are right, but that future, of giant vertically integrated content creator-distributors, is going to suck for the consumer.
     
    HecticArt likes this.
  11. scotchandcigar

    scotchandcigar arrogant bastard

    Isn't that what Netflix and Amazon are? And how about the availability of streaming HBO and Showtime? How is this different than those?
     
  12. memebag

    memebag Top Brass, ADVP

    Netflix and Amazon don't own the wires or wireless spectrum licenses needed to bring content to the consumer. They aren't content distributors, they are content creators and curators.

    HBO is owned by WarnerMedia, which is owned by AT&T. AT&T could, if it wanted to, make HBO an exclusive offering to AT&T subscribers. It can also offer free or discounted HBO content as a benefit of subscribing to AT&T.

    Imagine a future where the finite wireless spectrum is clogged with competing content creator/distributors. To watch the new "Star Trek" content you can subscribe to National Amusements Wireless, or pay out the ass. To watch the new "Star Wars" or Marvel content, you can subscribe to Disney Wireless, or pay out the ass. To watch the new "Game of Thrones" spinoffs, you can subscribe to AT&T, or pay out the ass.

    The distributors want to use content to avoid becoming commodities. Commodities are cheap. This will allow them to charge consumers more to use the frequencies consumers (as the real owners of the radio spectrum) licensed them in the first place.
     
  13. Wolf

    Wolf The Lone Wolf

    I have AT&T and DirecTV Now. Part of my package deals have gone up to pay for this merger. But AT&T does offer it's customers free HBO if you have the unlimited plan. So it's nice to watch Game of Thrones.

    I plan on subscribing to the new Disney+ streaming network to watch all of the Star Wars, Marvel and other future projects content.

    I'll never subscribe to CBS All Access just for Star Trek.
     
  14. memebag

    memebag Top Brass, ADVP

    We've been down this road before in the US. Before United States v Paramount Pictures, Inc. in 1948, movie studios owned movie theaters. They created the content and distributed it. They were sued and found guilty of violating antitrust laws, and forced to split content creation from content distribution.
     
  15. memebag

    memebag Top Brass, ADVP

    scotchandcigar likes this.
  16. Wolf

    Wolf The Lone Wolf

    Simple make more Game of Thrones and spinoffs shows and they can have Walking Dead money.

    Now AT&T should make me the new CEO of HBO and I'll bring back the classic show Dream On.

    Also I'll reboot The Sopranos for you guys and Sex & The City for Scotch. :p
     
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  17. scotchandcigar

    scotchandcigar arrogant bastard

    It'll be tough having some of those Sopranos characters put back together.

    The only reason you think I'm an S&C fan is because of the acronym. :eek:
     
    Wolf likes this.
  18. Wolf

    Wolf The Lone Wolf

    That's why rebooting the Sopranos would be easier, some have already passed away in real life.

    You caught that Sex & The City aka Scotch & The Cigar. That can be your new nickname around here. :laugh:
     
  19. MadisonRadio1

    MadisonRadio1 MadisonRadio

    I pay for Netflix, Hulu, STARZ, CBS Access, ESPN Plus along with HBO Now. HBO Now cost the most. I would guess they have to spend more to make and acquire their content
     
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