AT&T to buy DirecTV for $48.5 billion as cellular growth eas

Home Forums AT&T to buy DirecTV for $48.5 billion as cellular growth eas

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    Technology News

    The headquarters building of U.S. satellite TV operator DirecTV is seen in Los AngelesBy Liana B. Baker, Soyoung Kim and Marina Lopes (Reuters) – AT&T plans to pay $48.5 billion to buy DirecTV, the top U.S. satellite TV operator, in a bid for growth beyond an increasingly competitive cellular market. The deal, announced on Sunday, comes as Comcast Corp awaits regulatory approval of its $45 billion bid for Time Warner Cable Inc, a transaction that has the potential to transform the television landscape by creating a new cable and broadband Internet powerhouse. AT&T said it is offering $95 per DirecTV share in a combination of stock and cash, a 10 percent premium over Friday's closing price of $86.18. The cash portion, $28.50 per share, will be financed by cash, asset sales, financing already lined up and other “opportunistic debt market transactions.” Analysts said the deal would help support AT&T's dividend even as it confronts tougher competition from upstart T-Mobile USA and other cellular operators that have pressured its average revenue per user.

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