Today AT&T announced that it would be purchasing DIRECTV for $50 billion in cash and stock, which breaks down to about $95 per share. The buyout has AT&T seeking to provide DIRECTV's high quality video and programming to their customers via their already expansive and best in class fixed and mobile broadband services. In the future, consumers who subscribe to AT&T should see a rise in the types of content and available options they have for accessing content via broadband, whether that be in their home or on the go via their smartphones or tablets.
We should see plenty of video content based changes and offerings come to AT&T as the combined efforts through both companies will eventually be offering customers a wide range of new bundles that include video, high speed broadband and mobile services, while trying to better meet consumers needs and demands for how they like to access and view their video content. AT&T subscribers should also see new and unique exclusive content become available across multiple platforms like TV's, mobile devices, and computers. DIRECTV provides access to a decent number of sports related content to consumers like NFL Sunday Ticket, the MLB and NHL networks, as well as the Sundance Channel. With DIRECTV now joining up with the nations second largest wireless carrier, this will position AT&T to provide such content to subscribers through a number of different devices.
AT&T CEO Randall Stephenson states that "DIRECTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business. DIRECTV is a great fit with AT&T and together we'll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services. We look forward to welcoming DIRECTV's talented people to the AT&T family." It wasn't stated how soon we'll begin to start seeing some of the changes with new and added content for customers, or if there will be any changes to current DIRECTV customers with pricing, but AT&T's goal is to have the entire commitment completed within four years after the close of the sale.