US telecommunications giant AT&T is to acquire satellite television provider DirecTV in a stock-and-cash deal valued at $48.5 billion (£29 billion).
The transaction, which is pending approval by regulators, will create a formidable content distribution leader across mobile, video and broadband platforms as AT&T gains access to DirecTV’s 40 million subscribers in the United States and Latin America.
AT&T has a nationwide mobile network and a high-speed broadband network that will cover 70 million customer locations with the broadband expansion enabled by the transaction.
In a statement AT&T said combining the companies would position them to better meet consumers’ future viewing and programming preferences, offering bundles that include video, high-speed broadband and mobile services.
“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said Randall Stephenson, AT&T chairman and CEO.
“DirecTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business.
“This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DirecTV employees,” said Mike White, president and CEO of DirecTV.
“US consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.”
