Printed from http://www.electronista.com

Wall Street Journal: AT&T pursuing buyout of DirecTV

updated 09:05 am EDT, Thu May 1, 2014

Combined company would be nearly the size of Comcast and Time Warner Cable

AT&T has reportedly contacted DirecTV about purchasing the satellite television provider, according to sources familiar with the matter. The deal, if ever pursued to completion, would generate a 26 million user-strong television network, rivaling the size of the combined Comcast and Time Warner Cable giant. A timetable for an offer is unknown.

The deal, according to the Wall Street Journal, would be worth at least $40 billion -- well less than AT&T's $185 billion market capitalization. AT&T would use the company's video delivery assets to grow what it sees as its future, and would bolster weaknesses in each other's offerings. The combined entity would have satellite, wireless, and wired offerings, giving consumers numerous options for bundle deals.

Any deal would face intense scrutiny from regulatory agencies, already dealing with the Comcast and Time Warner Cable prospective merger. A source close to the US Federal Communications Commission (FCC) believes that there is a decent chance of a deal being approved, as the regulatory board sees solo services such as video or voice as dying out, and the combined company would be an excellent foil to the Comcast-Time Warner merged entity.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Patriot Fuel+ 6000 and 9000mAh batteries

Mobile device batteries are better than they used to be, but there's always a scenario where users could use more juice. Upgrade manuf ...

Sponsor

toggle

Most Commented

 
toggle

Popular News