- Mergers May 18
On Sunday, AT&T announced it is acquiring DirecTV, gaining 20 million U.S. subscribers in a $49 billion deal.
AT&T will buy the company at $95 a share, The Washington Post reports, or $66.40 a share in AT&T stock and $28.50 a share in cash. Assuming the two giants join forces, they will be able to sell consumers bundles of phone, pay-TV, and high-speed internet. "This is very, very unique," AT&T Chairman and CEO Randall Stephenson said in a conference call. The deal "fulfills a vision that we've had for a couple of years... to take premium content and deliver it over multiple points for the consumer."
It is the latest large-scale merger in the telecommunications industry, a trend that worries some. "The industry needs more competition, not more mergers," says John Bergmayer of the consumer advocacy group Public Knowledge. "We'll have to analyze this one carefully for potential harms both to the video programming and the wireless markets."- - Catherine Garcia
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- The 10 best networking tips for people who hate networking
- 11 scientific studies that will restore your faith in humanity
- What would a U.S.-Russia war look like?
- 7 grammar rules you really should pay attention to
- Why the West should let Russia have eastern Ukraine
- Scottish independence is another financial crisis waiting to happen
- Why baseball is America's most dangerous spectator sport
- Why you should stop believing in evolution
Quake comparison: Chile vs. Haiti
- The elusive 'It factor' in presidential politics
Subscribe to the Week