LOS ANGELES (AP) -- AT&T has agreed to buy satellite TV provider DirecTV for $48.5 billion, or $95 per share.
The proposed combination could improve AT&T's Internet service by pushing its TV subscribers into video-over-satellite service. That would free up bandwidth on AT&T's telecommunications network. It would also give AT&T a larger base of video subscribers and improve the company's ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February.
AT&T's chief executive calls it a deal that "will redefine the video entertainment industry." Chairman and CEO Randall Stephenson says the combined company will be able to "deliver content to consumers across multiple screens - mobile devices, TVs, laptops, cars and even airplanes."
But the deal is expected to face tough scrutiny from the Federal Communications Commission and antitrust regulators at the Department of Justice. AT&T's U-verse competes directly for TV customers with DirecTV, and analysts say the combination would reduce the number of possible pay TV providers from four to three for about 25 percent of U.S. households. That could result in higher prices for consumers.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.