AT&T Inc. (NYSE: T) has announced to acquire a satellite TV provider DirecTV (NASDAQ: DTV) for no less than $48.5 Billion or $95 per share. The deal will eventually place the AT&T among one of the top satellite TV providers in the US. It is being speculated as its an attempt by both of the companies to take over other existing services in the market, out of which one is the Comcast/Time Warner merge.

The combined customers being served by the AT&T would top around 26 million which includes about 20.3 million customers from DirectTV and about 5.7 million customers from the U-Verse TV.

“What it does is it gives us the pieces to fulfill a vision we’ve had for a couple of years – the ability to take premium content and deliver it across multiple points: your smartphone, tablet, television or laptop,” AT&T’s Chairman and CEO Randall Stephenson said on a conference call with journalists Sunday.

“Cable has long been the dominant provider of broadband and video services in the United States, and if the Comcast/Time Warner Cable/Charter transactions are completed, that dominance will swell even further,” He included.

The company promised to tie up the bills of both the mobile phone and satellite TV into one, and this held true for all existing and new customers joining the AT&T network. Even though, a slight rise in prices of the current plans is very much expected, the company promised about not charging the customers any unreasonable price.

From this acquisition the company is expected to make around $1.5 billion in a year, which then later will be invested in strengthening the company’s mobile network. However, that also puts the company at risk of losing the position in the growing market of the satellite TV, to keep up with its tough competitors, including Time Warner, AT&T needs to attract more customers by lowering the prices of the plans.

About The Author

Abby is fun loving yet serious professional, born and raised in Sioux Falls, SD. She has a great passion for journalism, her family includes her husband, two kids, two dogs and herself. She has pursued her Mass Communication graduation degree from the Augustana College. She is currently employed at, an online news media company located in Sioux Falls, SD.

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20 Responses

  1. Adam Temple

    Two companies that have awful support and love to fuck people just merged into one big cock

  2. Ray

    Yeah right more benefits……when you destroy the competition you have to suck up the prices that you got offered.

    This is called monopoly, and it is a big problem in the US.

  3. John J Dougherty Jr

    You guys are worried about your phone bill wait till you see your electric bill under cap and trade!

  4. Al Oliver

    AT&T has a corporate culture of lack of innovation that dates back to their refusal to provide anything more than the pink princess phone in the days of wired phones. We’d still be in the dark ages of dial-up and wired phones if we relied on AT&T. Why even here in Austin, AT&T only decided to offer increased internet speeds ONLY AFTER they were threatened by Google’s announcement of their new 1,000 MBPS fiber network. Then AT&T underhandedly tries to lock their unsuspecting customers into lengthy contracts so that they can’t switch providers without exorbitant termination fees.

    AT&T has more money than they know what to do with, routinely raking in $3 to $6 BILLION PER QUARTER (a billion is 1,000 million!), but instead of improving much of anything, they just acquire more and slowly raise prices, hoping you won’t notice or care. Any acquisitions of other companies can only mean an increase in prices for we consumers.

    ALL THE MORE REASON TO CUT THE CORD and eliminate ties to these incredibly greedy people. However, if you like handing over a good chunk of your money to people who are already incredibly wealthy for substandard service that is unlikely to ever improve, AT&T is definitely the way to go.

  5. Bill

    I have ATT as my phone carrier, and it is expensive and of limited value to me. I have Directv and it also is very expensive given the small number of channels I actually view given the price I pay. How about forcing alacarte selection of media channels on Directv ( I only pay for those I watch), and ATT price cuts on their other services? I could live with that if it provided it better matched what the value is.

    • Al Oliver

      I’m in your boat as well Bill, and feel the same way you do. I think we need a chart of how to access the channels we actually watch, enabling us to disconnect from these folks whose eyes are filled with nothing but dollar signs. When Google fiber comes my way and my contracts run out, I’m definitely cutting the cord!.

      • Bill

        I live out a ways from the “switch” so I can’t get DSL (digital subscriber line) from ATT (although it is available nearer to the switch). I have complained to the FCC and they forced ATT to call me, in the end, ATT isn’t going to upgrade my end of their network so to offer me anything decent for Internet connection and the FCC doesn’t care. As far as Directv, they out to have an ability to select a number of channels in an individualized package. Even if the price per channel is somewhat higher then average, I would pay much less as I only watch 10 or so. All the other channels I have to pay for, I never watch. Good luck to you.

  6. Peter

    I used to work for Bell Labs, At&T’s research center, and I have seen so many bad moves from AT&T’s management because they don’t understand technology. Satellite business is dying due to IPTV, so what AT&T does? It goes out and buys DirecTV instead of investing in Internet TV. I remember AT&T buying Covad, a DSL company, when everyone was getting out of the DSL business. Go figure…..

    • ZeeXenon

      Hey Peter, me too (Naperville BTL), anyway, how about that great ISDN idea? I used it during work-from-home days and about once a quarter someone would screw up the translations, but after a while, I knew exactly which ‘friends’ to call. We have not switched to Uverse yet because of the email address hassles, but the present TWC hassles are beginning to stress….

  7. Aunt Pee

    Are you serious? “More benefits for customers” … ? This merger means fewer options and higher prices. Learn how to spell M-O-N-O-P-O-L-Y. This is a disaster.

  8. Thorvington Finglethorpe

    What a load of crap: This “article” is an AT&T press-release with a byline on it. Never, even once, in the history of mergers has a merger “benefited” consumers. It is nearly universal that such mergers lead to higher prices due to there being less competition. In this case, it will give AT&T a much stronger hand in negotiating with content providers–so they’ll get a double bonus. They’ll get to squeeze the content providers even harder than they already do, AND squeeze customers even more than they already do.

  9. yusa1929

    I hope technology advances will cause all of the Government monopoly benefits given to ATT and others to become worthless and true competition sets market prices of services.

  10. Pam Heinecke

    Was this article translated from another language? This grammar is horrible. How did this get by an editor?

  11. Omega5250

    Weeee, how much will our bills go up to pay for this? With all the buyouts and mergers short of disconnecting (which is sounding better and better) we have fewer and fewer options.

    • Thorvington Finglethorpe

      I’m pulling the plug on U-Verse! I spend about $100 per month for BASIC service that’s JUST television (no premium channels, never pay-per-view anything.) It started off being around $60/month, then skyrocketed to $100. A total, complete ripoff.

      Just another example of the American trend of all businesses moving towards a “nickel & dime deception” model rather than “good product/honest price.”

  12. Rodney Vero

    What a CROCK!! Since WHEN did one of these corporate mergers/purchases/buyouts EVER “benefit” customers without skyrocketing fees, costs, and rates?

  13. AT&T: We will right many of world's wrongs if allowed to slurp DirecTV – Register |

    […] bid to acquire satellite-television firm DirecTV. The company said in a filing to the …AT&T and DirecTV merge up to bring more benefits for customersThe Westside StoryCord cutters might be the biggest losers in the AT&T-DirecTV mergerBGRAT&T […]

  14. Name

    So your first sentence is not gramatically correct, and then you say that Chromecast and TimeWarner are merging……….how can I read the rest of your article?????????? I guess anyone can post articles on the internet.


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