Analysis: 'Strong possibility' of AT&T-DirecTV merger

Oppenheimer says there is a "strong possibility" AT&T (T) will pull the trigger on a $100 bid for DirecTV (DTV).

After crunching the numbers, the investment firm says a DirecTV integration would be accretive to AT&T's free cash flow per share by at least 7%.

Though there has been a lot of talk from analysts about AT&T being able to increase its average monthly revenue per user through a DirecTV purchase, others note the real value could be on the content negotiation side where a DTV-T combination yields considerable leverage.

DTV +0.3% premarket to $86.35.

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Comments (3)
  • CLUB 198
    , contributor
    Comments (105) | Send Message
    A brilliant move to broaden it's footprint in relevant media...FAR superior move than the Vodafoneplay
    14 May 2014, 01:18 PM Reply Like
  • Fanebrb
    , contributor
    Comments (663) | Send Message
    Nice, but what will all this doto T price and dividend... huh ? Is there an expert out there that can tell us guys and gals ?
    15 May 2014, 04:14 PM Reply Like
  • CLUB 198
    , contributor
    Comments (105) | Send Message
    The "expert" is the LONG TERM stock price AFTER the acquisition is fully intergrated into the fabric of the company. T is NOT a quick turn proposition... never has been, never will be. I like T's recent moves because I believe they support long term performance improvements. I'm long because I'm NOT an expert...just a "historian" who sees it returning to it previous highs.
    16 May 2014, 01:48 PM Reply Like
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