AT&T to Announce Acquisition of DirectTV Tomorrow?
AT&T will announce the acquisition of DirectTV tomorrow, before the markets open on Monday, a source familiar with the deal told BuzzFeed.
“The deal is done,” the source said, adding that DirecTV CEO Mike White has already informed senior executives that the deal is finished and plans to give public confirmation Sunday.
It's estimated that the deal is worth $50 billion. DirectTV has about 20 million subscribers and it reported $2.6 billion in free cash flow last year. AT&T could use the additional resources to expand its video content offerings or fund new initiatives.
“With DirecTV they are getting a national TV presence -- they can sell TV with wireless nationwide,” says Roger Entner, an analyst with Recon Analytics, based in Dedham, Massachusetts. “AT&T has increasingly been breaking out of their 22-state landline footprint. They sell wireless, they started selling home security and they could add TV to that package.”