Bloomberg: AT&T in talks to buy DirecTV for ~$100/share


Bloomberg reports AT&T (T) is in "advanced talks" to acquire DirecTV (DTV) for ~$100/share - a 15% premium to DirecTV's Monday close, and a 29% premium to where shares traded before the WSJ's May 1 report about deal talks.

The acquisition price values DirecTV at $51B, or over $66B after factoring net debt.

Bloomberg adds that under discussed plans, DirecTV CEO Mike White plans to retire after 2015.

DTV now +5.6% AH to $92.

Earlier: AT&T/DirecTV deal could reportedly be announced in two weeks

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Comments (16)
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    by should be spelled BUY
    12 May 2014, 05:34 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3266) | Send Message
     
    Hi RS,

     

    I know you have been long T. So am I.

     

    Do you think this is a good move for T strategically? A lot of commentary has been generated here saying T ought to be more focused on advance technology competition like Google for instance or Facebooks efforts (global Wi-Fi efforts etc.).

     

    Ideas? I'm not so sure...

     

    Thanks!
    12 May 2014, 07:53 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    I really like this move. Makes T more compelling than ever with access to sat and cable....they have it all if this happens.
    12 May 2014, 11:21 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3266) | Send Message
     
    If you like it RS then I feel somewhat assuaged. I guess as I get more educated in the positive financial and technological dynamics I'll feel better too.

     

    Thanks again.
    13 May 2014, 01:18 PM Reply Like
  • Randal James
    , contributor
    Comments (4420) | Send Message
     
    Oddly enough, does this make the argument for Sprint and T-Mobile getting together stronger or weaker?

     

    I was delighted when VZ routed our neighborhood with fiber in NY so we could get out from under the thumb of Comcast. VZ did eventually make customer service a low priority, but the pricing and quality of products were good. VZ had a big advantage in the population densities in the NE were favorable for stringing a lot of fiber - unlike Montana.

     

    T has a lot of the backbone for fiber and DTV surely has a good block of content to distribute. Doesn't matter much if it is sat based or wired though people in rural areas won't benefit much.

     

    I'd almost think that this makes T and VZ such formidable competitors that to disallow Sprint and TMUS from hooking up is merely to let them swing in the wind.

     

    Safe bet Charlie Egan is looking at T-Mobile?
    12 May 2014, 05:35 PM Reply Like
  • MisterJ
    , contributor
    Comments (1176) | Send Message
     
    Nice.
    12 May 2014, 06:46 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3266) | Send Message
     
    Why? Elaborate, please.
    12 May 2014, 09:16 PM Reply Like
  • HFI
    , contributor
    Comments (1687) | Send Message
     
    Good for DTV shareholders... I don't know about AT&T. It does strengthen its position against a Comcast TWC merger and the subsequent Charter subscriber acquisition.
    12 May 2014, 10:44 PM Reply Like
  • Energysystems
    , contributor
    Comments (2112) | Send Message
     
    I think it's a great move for $T. Neither $VZ or $T have really made their way to cable penetration, despite a lot of investment. Adding roughly 20M US subscribers, it will solidify a market position in a mature and very competitive marketplace. I wouldn't be surprised, if $VZ attempts a similar deal with $DISH in the very near future.
    13 May 2014, 04:04 AM Reply Like
  • bd4uandu
    , contributor
    Comments (2074) | Send Message
     
    Looking at the history of DirecTV it has had quite a ride .... http://bit.ly/1l7Lmzn
    13 May 2014, 05:35 AM Reply Like
  • Micah
    , contributor
    Comments (498) | Send Message
     
    Smart move for $T. $DTV satellite assets are fantastic. Very under utilized and can add millions of net new subscribers for limited infrastructure costs. The existing satellites also have the capacity to push through extremely high bandwidth like 4k.

     

    $DTV has the stable and mature US cable market for cash flow and the rapidly growing opportunity in Latin America.
    13 May 2014, 05:53 AM Reply Like
  • User 14433572
    , contributor
    Comments (2) | Send Message
     
    $T another overpriced Death Star acquisition
    13 May 2014, 08:16 AM Reply Like
  • Randal James
    , contributor
    Comments (4420) | Send Message
     
    Tell me again how many of the baby Bells are still around? In the movie, little - but noble - Luke slays the dragon. In real life, his Dad is still on the bridge yelling "Woo Hoo!"
    13 May 2014, 09:20 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    DTV is trading at $86 - could this potentially be a good risk arb trade?
    13 May 2014, 11:45 AM Reply Like
  • HFI
    , contributor
    Comments (1687) | Send Message
     
    Big chunk of it will be stock, so you can technically buy DTV and short T for the trade.
    13 May 2014, 02:34 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3548) | Send Message
     
    DirecTV is not worth $100, Maybe $70.
    13 May 2014, 03:33 PM Reply Like
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