Digital Bounds Logo

AT&T Nears Deal to Buy DirecTV for $50 Billion

AT&T and DirecTV deal talks are nearing a deal that’s reportedly worth $50 billion. DirecTV will operate as a separate part of AT&T if purchased by the company.┬áDirecTV Chief Executive Officer Mike White is likely to retire after 2015, but its unclear if DirecTV will start to work with the company even closer after that.

The acquisition would value DirecTV at roughly $100 per share, roughly a 15% premium over where the company’s shares closed on Monday. While both companies declined to comment, these rumors are coming from reliable sources. The deal even announce may not even happen because the deal will have to be approved by the United States government.

This purchase could be a response to Comcast’s attempt to buy Time Warner Cable, which would threaten AT&T more than the two companies being separate. This AT&T and DirecTV deal could threaten net neutrality even more because there will be less providers out on the open market. Hopefully the government will understand this isn’t the best for consumers and decline to approve the purchase.

Comments