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.