AT&T reportedly considering $40 billion DirecTV acquisition

[PillowSmoke]

If the idea of Comcast buying out Time Warner Cable to become the largest cable company in America wasn't enough to make you worry about media consolidation, news tonight from the Wall Street Journal just might. Reportedly, AT&T has approached DirecTV to begin "possible acquisition" talks, a deal that the WSJ says could be worth over $40 billion. If it were to happen, it would give the combined company something on the order of 26 million TV subscribers, making it second only to the hypothetical Comcast/TWC combination of 30 million.

 

DirecTV could be looking to make a deal. The company was also recently rumored to be in talks with Dish about a merger as recently as last month. But working with AT&T might make more sense — the two companies already have an existing partnership in some areas.

 

It's entirely unclear how federal regulators would feel about a AT&T/DirecTV tie up, as we've yet to really see how Comcast's proposed merger will fare. In the event that both buyouts are approved, we'd have two massive companies with national footprints and dominant marketshare in the cable and satellite TV business, respectively. What the media landscape would look like in such a scenario is practically impossible to fathom, but we might hazard a few guesses.

 

Source: http://www.theverge.com/2014/4/30/5670434/at-t-reportedly-considering-40-billion-directv-acquisition

[TheNinjaNextDor]

[Mauri]

yay, less competition, higher prices.

[Anthony10]

Wow...

Comcast buying timewarner

AT&T buying DirectTV

Sprint buying T-Mobile...

The government will not be happy about this.. (monopoly reasons)

[PillowSmoke]

Wow...

Comcast buying timewarner

AT&T buying DirectTV

And whatever company that was who's buying T-Mobile...

The government will not be happy about this.. (monopoly reasons)

 

sprint.

[Anthony10]

sprint.

thanks

[MrYuriy]

If the idea of Comcast buying out Time Warner Cable to become the largest cable company in America wasn't enough to make you worry about media consolidation, news tonight from the Wall Street Journal just might. Reportedly, AT&T has approached DirecTV to begin "possible acquisition" talks, a deal that the WSJ says could be worth over $40 billion. If it were to happen, it would give the combined company something on the order of 26 million TV subscribers, making it second only to the hypothetical Comcast/TWC combination of 30 million.

 

DirecTV could be looking to make a deal. The company was also recently rumored to be in talks with Dish about a merger as recently as last month. But working with AT&T might make more sense — the two companies already have an existing partnership in some areas.

 

It's entirely unclear how federal regulators would feel about a AT&T/DirecTV tie up, as we've yet to really see how Comcast's proposed merger will fare. In the event that both buyouts are approved, we'd have two massive companies with national footprints and dominant marketshare in the cable and satellite TV business, respectively. What the media landscape would look like in such a scenario is practically impossible to fathom, but we might hazard a few guesses.

 

Source: http://www.theverge.com/2014/4/30/5670434/at-t-reportedly-considering-40-billion-directv-acquisition

 

The only thing worse would be Verizon buying Comcast. That's like Google buying Apple.

 

 

Wow...

Comcast buying timewarner

AT&T buying DirectTV

Sprint buying T-Mobile...

The government will not be happy about this.. (monopoly reasons)

Sprint is attempting to place a bid on T-Mobile. This is nowhere near a sure-thing yet, but damn would this be outright horrible. And don't forget.. T-Mobile and MetroPCS just recently merged too.

[Guest Kloaked]

[TheGosuStandard]

To hell with these companies.

[Argent]

Link to the WSJ article for those who haven't read it: http://webcache.googleusercontent.com/search?q=cache:http://online.wsj.com/news/articles/SB10001424052702304178104579534673724368360

 

I figure if the Comcast deal goes through and this deal is formally announced, it too will be approved.  

 

Add in AT&T partnering to offer its own video service?  Things are looking bright for those executives. 

[qwertywarrior]

ok this seriously needs to stop

big companies buying big comapnies

 

anything small that wants to grow will be blocked in the future

and no competition will be a massive issue

[ItsComrade]

Why doesn't LTT just buy them all?

[Adamuchan]

Why doesn't LTT just buy them all?

 

I would welcome our new LTT overlords with open arms.

 

Linus should crowd-fund this.

 

/sarcasm

[minimalist]

I actually don't mind this.  DirecTV isn't even that good and ATT doesn't have that big of a hold on TV.  I'm all for it.  This isn't even remotely like Comcast acquiring Time Warner.

[Imaginaerum]

This hardly becomes a monopoly, DirecTV is already everywhere and so is Dish, being owned by AT&T doesn't seem like it would change that unless they went and tried to buy Dish too.

[Admire]

Im not a lawyer(Thank god), but how can this be legal? I have very little knowledge of american law, but there has to be some anti trust laws that would make this shit illegal?

 

 

 

This hardly becomes a monopoly, DirecTV is already everywhere and so is Dish, being owned by AT&T doesn't seem like it would change that unless they went and tried to buy Dish too.

 

That sure sounds like a monopoly.

[minimalist]

Im not a lawyer(Thank god), but how can this be legal? I have very little knowledge of american law, but there has to be some anti trust laws that would make this shit illegal?

 

 

 

 

That sure sounds like a monopoly.

 

More people have cable than dish.  It's not a monopoly.  ATT has nowhere near the share of people as Comcast.  Same as DirecTV.  Together I'm sure they'd still be smaller than Comcast. 

[Admire]

More people have cable than dish.  It's not a monopoly.  ATT has nowhere near the share of people as Comcast.  Same as DirecTV.  Together I'm sure they'd still be smaller than Comcast. 

 

Monopoly is not only in terms of nationally. Im sure there are a lot of areas where they have one option or nothing.

[minimalist]

Monopoly is not only in terms of nationally. Im sure there are a lot of areas where they have one option or nothing.

 

If you're implying that people would be forced to have ATT because their only option was DirecTV before that's simply not the case.  Cable is offered everywhere.  DirecTV, not everywhere.

[Admire]

If you're implying that people would be forced to have ATT because their only option was DirecTV before that's simply not the case.  Cable is offered everywhere.  DirecTV, not everywhere.

 

Thanks for clarifying. Im not uncomfortable with such massive companies....especially since the whole "too big to fail" thing.

[minimalist]

Thanks for clarifying. Im not uncomfortable with such massive companies....especially since the whole "too big to fail" thing.

 

NP.  I'm not sure how accurate this is but it can't be too far off...

 

 

Edit***This one is better:

[Admire]

NP.  I'm not sure how accurate this is but it can't be too far off...

 

 

 

That is an awful few companies in such a big country.

[minimalist]

That is an awful few companies in such a big country.

 

I guess.  I have no problem with 4-5 huge companies following the law and not colluding.  I was definitely off about the market share for DirecTV but as you can see, ATT is still very very small.  If that spurred a company like Verizon to invest in some companies that would then mean, Comcast, Verizon, ATT, all competing.  3 isn't enough but if a 4th can get in there like Google, that would be good.  Small isn't always better.

[Admire]

I guess.  I have no problem with 4-5 huge companies following the law and not colluding.  I was definitely off about the market share for DirecTV but as you can see, ATT is still very very small.  If that spurred a company like Verizon to invest in some companies that would then mean, Comcast, Verizon, ATT, all competing.  3 isn't enough but if a 4th can get in there like Google, that would be good.  Small isn't always better.

 

 

You might be right...:I looked at the second slide and its actually not that bad really. As long as Comcast isn't allowed to get that much bigger.

 

I am ofcourse following these stories from a far....Little surprised at the slides since there are a few with a lot of market shares i haven't heard about.. Never heard of Cox but they are apparently quite big.

 

We actually have a bad situation in my company compared to Europe but that was down to a really badly executed privatization of the publicly owned company so we basically gave a hedge fund a massive infrastructure without rules....brilliant move. They are luckily losing marketshares constantly because they made stupid decisions....among them not believing in fiber...They have completely lost the private market in terms on internet and have started to lose on tv as well.

[EChondo]

Looks like I'll be dropping DirecTV.