Business

AT&T To Acquire Broadcast Provider DirecTV

NPR | May 18, 2014 9:17 p.m.

Contributed By:

Steve Mullis

Telecommunications giant AT&T and DirecTV announced Sunday that the two companies had reached a definitive agreement which would see AT&T acquiring the broadcast service provider.

AT&T is buying DirecTV for about $48.5 billion, reports the New York Times. But the Times reports that the deal, including debt, is valued at about $67 billion.

Under the terms of the deal, AT&T will pay about $95 a share in stock and cash. That’s a roughly 10 percent premium to DirecTV’s closing share price on Friday and about 30 percent higher than where the company’s shares were trading before rumors of a deal began to emerge.

“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,” said AT&T Chairman and CEO Randall Stephenson in a statement.

The acquisition by AT&T will increase its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February. [Copyright 2014 NPR]

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