DALLAS (CBSMiami/AP) —AT&T is slated to buy DirecTV for $48.5 billion.
Company officials agreed on the purchase Sunday, May 18th. The move gives the telecommunications company a larger base of video subscribers and increases its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February.READ MORE: 'Above Average' Hurricane Season Still Forecast In NOAA Update
AT&T’s proposed combination, which is subject to government review, could improve its Internet service by pushing its existing U-verse TV subscribers into video-over-satellite service, and thereby free up bandwidth on its telecommunications network.
AT&T currently offers a high-speed Internet plan in a bundle with DirecTV television service. The acquisition would help it further reap the benefits of that alliance.
With 5.7 million U-verse TV customers and 20.3 million DirecTV customers in the U.S., the combined entity would serve 26 million. That would make it the second-largest pay TV operator behind a combined Comcast-Time Warner Cable, which would serve 30 million.READ MORE: Broward School Board Backtracks On Mask Mandate Decision, Will Meet Aug. 10 To Discuss
The companies expect the deal to close within 12 months. Under the terms agreed to Sunday, DirecTV shareholders will receive $28.50 per share in cash and $66.50 per share in AT&T stock. The total transaction value is $67.1 billion, including DirecTV’s net debt.
The deal could face tough scrutiny from the Federal Communications Commission and antitrust regulators at the Department of Justice.
TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.MORE NEWS: Shortage Of Nurses Cited As 'Huge Challenge' During Gov. Ron DeSantis' COVID Roundtable With Hospital CEOs
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