AT&T and DirecTV deal could be two weeks away (Report)

May 12 22:00 2014

AT&T’s move to acquire DirecTV could come together in about two weeks if talks keep progressing at their current rate.

Sources familiar with the deal spoke with The Wall Street Journal and said that the deal would likely include a combination of stock and cash. The deal could be worth up to $50 billion as AT&T would pay a premium for the satellite-TV provider’s stock.

The sources say that AT&T is currently trying to figure out the stock issue, due to increased dividend obligations that could arise should the company issue stock to help in the acquisition.

Bloomberg reports that the deal would allow DirecTV to continue under current management and be a unit of AT&T. Current CEO Mike White is looking to retire next year.

The deal would be particularly useful for DirecTV as the company has seen little growth in subscriptions and cannot sufficiently compete with cable companies, as the latter can tie together bundles that include broadband Internet.

After news of a possible deal, which sources cautioned could easily fall apart as it has before, DirecTV shares rose six percent to $92.50.



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Kyle Johnson
Kyle Johnson

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