AT&T Mulling $50 Billion Bid for DirecTV
Published on: 13th May 2014
Note -- this news article is more than a year old.
USA based AT&T may have ditched its overseas expansion ambitions and is reportedly mulling a USD50 billion takeover bid for the satellite TV provider, DirecTV.
Various reports suggest that AT&T could launch a takeover bid for the US broadcaster within the next couple of weeks.
The offer is variously said to be a mix of shares and cash, valuing the company at US$100 per share -- a premium on their current trading average of US$90 per share. The offer would be around 20% higher than the shares when rumours of a bid first emerged at the start of the month.
The satellite operator has around 20 million paying subscribers, which would compliment AT&T's existing 5.7 million cable TV customers. AT&T would then expect to cross-sell its other landline and mobile services to DirecTV customers.
The management team at DirecTV would remain in charge, and operate the company as a subsidiary of AT&T the reports suggested, which may limit some of the cost saving potentials that usually come from such transactions.
None of the companies have commented on the reports.
If AT&T does persue the bid, then it would almost certainly kill off any European ambitions that it might have had.