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AT&T, the American multinational telecommunications corporation, is in talks about purchasing DirecTV, the largest ...
AT&T, the American multinational telecommunications corporation, is in talks about purchasing DirecTV, the largest US satellite TV provider, for about $50 billion. Leaked information from the management of DirecTV, who asked not to be named, said that the company will be run as a unit of AT&T. AT&T and DirecTV are not available for comment for now, but the deal is expected to happen within the next two weeks. The purchase would combine AT&T's wireless, phone and internet service with a national satellite TV provider, making the deal a complete package.
The precise price per share is still unknown, but rumour says that a bid of near $95 per share would give the alluded to value of $48 billion. But the price is still negotiable and terms might still change, as the discussions are continuing. On Monday, DirecTV shares rose 6 per cent, reaching a value of $92.50 per share.
"This is not the first time that AT&T and DirecTV have danced around the fire and thought if they could give it a go," said ReconAnalytics analyst Roger Entner. "They both looked at each other for at least 10 years. Both kind of came to the conclusion that it was in the right environment. It makes a lot of sense to get together, but there was never the right regulatory environment for it."
This is not the only purchase of this kind lately. There is another mega movement in the telecom and cable TV space happening as well, with Comcast Corp's proposed takeover of Time Warner Cable Inc. for $45 billion.