AT&T is on it’s way to communication domination.
The telephone company is looking to pay $67 Billion dollars for the purchase of DirecTV.
AT&T have reached an agreement for $95 a share for the satellite TV company, according to a recent report.
In the deal, AT&T will pay DirecTV shareholders $95 per share, valuing the satellite TV service provider at $48.5 billion. Including DirecTV’s debt, the total transaction’s value is about $67 billion.
The merger was approved by both companies’ boards Sunday, and is the latest example of consolidation in the TV-telecommunications sector. With steaming and wireless technology spreading and redrawing traditional service arrangements, telecoms are looking to gain customers and control content, while cable and satellite providers are looking to add product options and boost revenues [TheWrap].
This will allow for AT&T to provide television services through fiber-optics with U-Verse and satellite programming with DirecTV.
However, before the deal can go through it must be approved by federal regulators.
The last time a major acquisition such as this occurred when T-Mobile was purchased by Sprint. The deal was later rejected by Federal regulators as many argued that it was the start of a corporate monopoly.
It is too early to tell how this will affect consumers, if the deal does go through. But, many argue that this will mark the end of net neutrality.
