AT&T's agreement to buy El Segundo-based DirecTV for $ 48 billion "dramatically increases video revenues, accelerates broadband growth and significantly expands revenues from outside United States." The merger was announced on May 18 and aims to create a leading provider of content across mobile, video, and broadband platforms.
Consolidation with the two companies was called a "stronger competitive alternative to cable." The combined company will expand broadband coverage including rural areas to cover broadband to cover 70 million customer locations.
DIRECTV’s TV service will continue to be available on a stand-alone basis at nationwide package prices. Prices will be the same for all customers regardless of location for at least the next 3 years.
DIRECTV's premier content has a heavy emphasis on live sports programming with exclusive pay TV rights to NFL SUNDAY TICKET. Content ownership includes ROOT SPORTS Networks and minority stakes in the Game Show Network, MLB Network, NHL Network and the Sundance Channel.
AT&T stated its commitment to the FCC's net neutrality and said DirecTV will remain based in El Segundo.
The transaction will take about one year to close and first must meet with approval by DIRECTV shareholders and review by the Federal Communications Commission, U.S. Department of Justice, a few U.S. states and some Latin American countries.
Full details including stock information are available on AT&T's website.