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

By Kyle Johnson,

AT&T's takeover deal of 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 part of the payment, 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 as of late and cannot sufficiently compete with cable companies in the realm of bundling together Internet packages, due to limited speeds.

After the 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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