AT&T to Acquire Direct TV (DirecTV) for $48.5B!

AT&T to Acquire Direct TV (DirecTV) for $48.5B!

CNET:
AT&T said on Sunday that it had agreed to buy DirecTV in a cash and stock deal worth $48.5 billion, marking the second proposed deal this year to shake up the pay-television business.

DirecTV shareholders will receive a total of $95 per share, with $28.50 of which will be paid in cash and $66.50 paid in stock, the companies said Sunday in a statement. The $95 per share offer is a 10 percent premium over DirecTV’s closing stick price Friday.

“The transaction combines complementary strengths to create a unique new competitor with unprecedented capabilities in mobility, video and broadband services,” the companies said in the joint statement.

The acquisition, which the companies expect to close within 12 months, creates a powerhouse for services in the home, allowing AT&T to pair its own wireless network with DirecTV’s satellite TV service, which is available nationwide. The deal comes as AT&T faces a slowdown in growth in its core wireless business, as well intense competition for its wireline service, a factor in the proposed $45.2 billion merger between Comcast and Time Warner Cable.