AT&T announced late on Sunday that it has acquired DirecTV for about $48.5 billion. The boards at both companies have approved the deal. The acquisition will enable AT&T to cover 70 million more customer locations through broadband expansion. AT&T’s acquisition of DirecTV will allow it to offer a “bundle” of services to switch over from cable TV.
“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens ? mobile devices, TVs, laptops, cars and even airplanes,” stated AT&T chairman and CEO Randall Stephenson. ?DirecTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business.”
DirecTV also has exclusive TV rights to NFL Sunday Ticket, which offers subscribers with access to every out-of-market game on multiple devices. DirecTV also runs Root Sports Network and has stakes in Game Show Network, MLB Network, NHL Network and the Sundance Channel.
DirecTV shareholders will receive $95 per share, which works out to a total equity value of $48.5 billion and has a total transaction value of $67.1 billion including DirecTV’s existing debt. DirecTV’s service will remain available in unbundled form for at last three years after the deal is closed.