• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

AT&T to buy Direct TV for $48.5 billion

Status
Not open for further replies.
I thought AT&T was strapped for cash - and it was the main reason why they could not support the 'heavy' data usage from the customers, to upgrade the network and what not?

And, now, they buy DirectTV.
 
Hmmmm I wonder why AT&T has recently been upgrading the infrastructure/network in the Houston area is they're so strapped for cash.
 
This is Direct TV throwing out the lifeboats before the impending 4k ice berg.

Internet >>> Satellite.

Satellite providers are going the way of disk media.
 
Seems like a rather odd fit. AT&T is facing saturation in the cell phone market and pressure from competitors like tmobile, and now they're adding DTV, wich doesn't look to be growing at all, and doesn't look like it's going to be growing any time soon since more and more people are getting entertainment over the internet rather than from satellite TV.

Regardless, 10% premium ain't gonna work. They're going to have to pony up more than that.
 
Jaskalas said:
Internet >>> Satellite.

Satellite providers are going the way of disk media.
Click to expand...

In the long run I'd agree, but it's going to be decades before everyone (especially in more rural areas) has cable broadband available. In the meantime, that's about 40 million customers that will continue to use satellite for a long time.
 
Londo_Jowo said:
Newell Steamer said:
I thought AT&T was strapped for cash - and it was the main reason why they could not support the 'heavy' data usage from the customers, to upgrade the network and what not?

And, now, they buy DirectTV.
Click to expand...

Hmmmm I wonder why AT&T has recently been upgrading the infrastructure/network in the Houston area is they're so strapped for cash.
Click to expand...

The article explains this.

For one thing the acquisitions is 70% funded by ATT's stock.

The rest, the cash portion, comes from a variety of sources. The article also says ATT's cash flow will be improved/enhanced:

"This is financial engineering," said Kevin Smithen, an analyst at Macquarie. "It is a transaction that secures the dividend for many years, taking advantage of AT&T's relatively high valuation and low interest rates to do an accredited acquisition that will bolster its free cash flow."

To facilitate regulatory approval, AT&T will sell its roughly 8 percent stake in Carlos Slim's America Movil. DirecTV has some 18 million customers throughout Latin America, in addition to its 20 million U.S. subscribers.

AT&T said it expects the takeover to deliver cost savings at an annual rate of $1.6 billion by the third year after closing.
Click to expand...

Aside from the "financial engineering" benefits I believe ATT's real objective is acquiring content. First, however, they are increasing their distribution channels which will give them leverage when they move to acquire content.

(There is a content aspect here. DirectTV has rights to NFL games. If they lose that this deal with ATT is probably off.)

Fern
 
Newell Steamer said:
Satellite will be around, until Google Fiber wires the entire USA.

Current ISPs won't do jack until then, and therefore leave satellite pretty much untouched.
Click to expand...

Netflix thinks it can stream 4k at 15mbs. Charter cable here offers 100mbs. 15-20mb barrier to entry actually seems rather low, and widely accessible. Am I mistaken?

Not only do I think the internet is ready for 4k, but younger generations are dropping traditional TV. Satellite providers can see the writing on the wall. I do not expect them to survive the transition to 4k.

5 More Reasons You’ll Be Cutting Your Cable TV Cord Next Year
Are Young People Watching Less TV?
In Changing News Landscape, Even Television is Vulnerable

Ready To Cut The Cable TV Cord? Here's How To Do It
Your Guide to Cable TV Cord-Cutting
How to Cut the Cord and Ditch Cable Once and For All
 
Last edited:
Status
Not open for further replies.

TRENDING THREADS

Back
Top