AT&T to Buy DIRECTV in $49 Billion Deal

DALLAS/EL SEGUNDO: AT&T is acquiring the satellite broadcaster DIRECTV for $48.5 billion, marking the latest in a series of megadeals that are transforming the media and telecommunications landscape.

AT&T will gain DIRECTV's 20 million U.S. subscribers and an additional 18 million in Latin America. For DIRECTV, the deal will allow it to package its TV service with the telecommunication giant's phone and broadband offerings. AT&T has almost 120 million wireless subscribers and 16.5 million broadband customers across the nation.

“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. At the same time, it creates immediate and long-term value for our shareholders,” said Randall Stephenson, AT&T's 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. DIRECTV is a great fit with AT&T and together we’ll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services. We look forward to welcoming DIRECTV’s talented people to the AT&T family.”

“This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DIRECTV employees,” added Mike White, the president and CEO of DIRECTV. “U.S. 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.”

The sale comes just three months after cable giant Comcast struck a deal to acquire Time Warner Cable for $45.2 billion, which would be the nation's largest cable operator. Both AT&T and Comcast still face regulatory hurdles.