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AT&T Mulling $50 Billion Bid for DirecTV

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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.

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Tags: at&t  directv  USA