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AT&T Announces it Has Purchased DIRECTV

AT&T Announces it Has Purchased DIRECTV

DIRECTV and AT&T has issued a joint press release today confirming that the SAT provider has been purchased by the Telcom giant in a stock and cash deal valued at $95.00 per share. The press release went on to state that the corporate boards of both companies involved have approved the deal.

The merging of these two powerhouse companies is likely to have wide reaching consequences in the technology market. It is speculated that this merger could be the factor that causes more company mergers and consolidations in the industry by other major players fighting to remain competitive. If federal agencies approve this deal and the Comcast/Time Warner Cable merger, two behemoths that can dominate the industry will have been created. This will very likely reduce the power and ability of smaller companies to compete in the marketplace. This could very likely be the deciding factor that makes these smaller providers realize they need to merger or acquire other companies just to survive the fallout of the larger mergers.

What will happen here is yet to be seen though. The FCC and Justice department could approve one of the two mergers, they could approve both mergers, or they may deny both filings and not allow either of these two mergers to take place. This last choice is unlikely, but it would possibly be the best route to take, since it would keep the playing level and fair for all parties directly or indirectly involved or affected by these mergers.



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