Menu
Report: AT&T is looking to acquire DirecTV

Report: AT&T is looking to acquire DirecTV

The combined company would have about 27 million TV subscribers

AT&T has approached satellite provider DirecTV about a possible acquisition, in a bid to more closely integrate TV and broadband services, according to the Wall Street Journal.

The deal is expected to be worth more than US$40 billion, and would combine DirecTV's approximately 20 million TV subscribers with AT&T's already existing U-verse TV offering, which added 201,000 subscribers in the first quarter to reach 5.7 million.

The possible deal comes as the U.S. TV sector is in a state of flux, after cable giant Comcast announced a $45.2 billion deal to purchase competing cable television and broadband provider Time Warner Cable in February. That still has to win regulatory approval in the face of considerable opposition.

In Europe, Vodafone has acquired Germany's largest cable operator, Kabel Deutschland, and Spanish cable operator Ono. In France, cable operator Numéricable is buying mobile and fixed-line operator SFR.

Telecom operators and pay-TV providers around the world are under pressure from Internet-based voice and video services, respectively. Shrinking revenues from voice and messaging thanks to competition from the likes of WhatsApp and Skype are forcing operators to look for new revenue streams. At the same time the battle for viewers is growing more intense thanks to content becoming available from a growing number of companies as well as products such as Amazon's new Fire TV.

In 2013, DirecTV's U.S. revenues increased 6 percent to $24.68 billion compared to the prior year thanks to an increasing average revenue per user. However, net subscriber additions decreased from 199,000 to 169,000 in the prior year. The decline in gross additions was in part due to a more challenging competitive environment and mature industry, DirecTV said earlier this year.

AT&T and DirecTV both declined to comment on the possibility of an acquisition.

Send news tips and comments to mikael_ricknas@idg.com


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationconsumer electronicsCarrierssatelliteat&tTVsMergers and acquisitionsDirecTV

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Show Comments