Dow Jones: DirecTV talking with advisors about AT&T deal

Dow Jones reports DirecTV (DTV +8%) is talking with Goldman and other advisors to weigh a possible merger with AT&T (T +0.8%).

The report led shares to spike shortly before the close. The WSJ previously reported AT&T has approached DirecTV about a deal.

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Comments (9)
  • xxavatarxx
    , contributor
    Comments (4926) | Send Message
    Good idea.
    DTV picture is way better than Uverse.
    Yet DTV is doomed since they can't provide internet or phone.
    7 May 2014, 04:39 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (217) | Send Message
    As a long time DTV holder, I wish I could find about 20 more "doomed" companies just like them.
    7 May 2014, 04:46 PM Reply Like
  • xxavatarxx
    , contributor
    Comments (4926) | Send Message
    You wouldn't be saying that in 5-10 years.
    They are losing subscribers.


    They just can't be cost competive against telcos and cable providers who can offer bundled packages.


    Why do you think they want to do a merger?
    They know it....
    7 May 2014, 04:51 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (217) | Send Message
    They just added 12k new subscribers in the US last quarter. They added 361k new subscribers in Latin America, where they are just scratching the surface. DIRECTV’s Latin America subscribers are currently up 8.5% year over year.


    As someone who has doubled their money in DTV in the last 24 months, I'm hoping they'e merging because T is blowing them out of the water with an offer as a last ditch effort to revive a moribund company. I certainly know why T is looking at a deal. It would give UVerse a much larger penetration into markets where they currently have no foothold, particularly in the Northeast. Otherwise for DTV there is no reason to mess up a company so magnificently managed with such a stellar balance sheet. They're a cash flow machine.


    Finally, I think you're grossly overvalueing the appeal of VoIP, which is cheap and common through a variety of providers. VoIP and internet is a loss leader they throw into the package to get you to sign up for television, which is where the real profit margins are at. I don't know anyone under the age of 80 who has ever picked their TV provider because they were getting some sweet, sweet Skype or Magic Jack equivalent thrown into the deal.
    7 May 2014, 05:02 PM Reply Like
  • MrVincent
    , contributor
    Comments (257) | Send Message
    Yeh, without high speed internet, I cannot justify a dish system. They DO have the best picture and channel selection however.
    7 May 2014, 07:10 PM Reply Like
  • jhkenne
    , contributor
    Comment (1) | Send Message
    The growth and possibilities for U-Verse is unlimited. It's the way of the future. For a service that was just launched in 2008 or really 2010, it's the fastest growing TV service in the US. Plus it's not degraded when it rains. As of today it has over 6 million customers. Some of these had to be former DTV customers . I love my U-Verse. Here is their history:


    U-verse Voice was added on January 22, 2008, and was first available in Detroit.[3] In 2008, U-verse availability approached 8 million households, and over 225,000 customers had been enrolled, with new installations reaching 12,000 per week.[1] By 2009, 1 million U-verse Voice customers and 2.1 million U-verse TV customers had been enrolled.[4]


    At the end of 2011, U-verse was available to more than 30 million living units in 22 states, and U-verse TV had 3.8 million customers.[5] By mid-2012, U-verse TV had 4.1 million customers, U-verse Voice 2.6 million, and U-Verse High Speed Internet 6.5 million.[6]


    By the third quarter of 2012, U-verse had 4.3 million TV subscribers, 2.7 million Voice subscribers and 7.1 million High Speed Internet. This represents 7% growth quarter on quarter. The actual number of customers is lower, as most customers subscribe to a bundle (such as TV and voice) and so are counted in both categories.[7]


    On November 7, 2012, AT&T announced plans to do the following:


    Upgrade U-verse to up to 45 megabits per second and U-verse IPDSLAM to up to 24 megabits per second.
    Offer U-verse IPDSLAM service to 24 million customer locations in its wireline service area by the end of 2013.
    Expand and enhance its wireline IP network to 75% of all customer locations in its wireline service area by the end of 2015.
    Expand U-verse by more than one-third or about 8.5 million additional customer locations by the end of 2015.
    On October 1, 2013, AT&T announced that it had begun deployment of a 100 percent fiber Internet broadband network in Austin that will deliver speeds up to 1 Gigabit per second. AT&T plans to begin delivering AT&T U-verse® with GigaPowerSM, the city’s fastest Internet available to consumers, along with more advanced TV services and features, in December 2013.[8]
    7 May 2014, 11:47 PM Reply Like
  • Econ Student
    , contributor
    Comments (248) | Send Message
    This makes sense for (T) so they will already have an established TV service. This also makes sense for (DTV) so they can do bundles. However as a customer I want DirecTV to stay independent because I would hate to deal with AT&T customer service for my TV as well.
    8 May 2014, 12:58 AM Reply Like
  • xxavatarxx
    , contributor
    Comments (4926) | Send Message
    One thing of note.


    AT&T is planning in installing fiber in quite a few metro area's.
    Not a global threat to DTV.
    But with a 1G pipe AT&T would no longer have to compress it's TV.
    And they would still have a ton of bandwidth available for internet.
    8 May 2014, 04:42 AM Reply Like
  • jodinajospeh
    , contributor
    Comments (27) | Send Message
    Hey Dish announced a web-based tv service that includes ESPN and some live sports launching by end of the year, for $20-$20 a month. You should report on that, seems like a bigger deal than rumors about mergers
    9 May 2014, 07:45 PM Reply Like
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