AT&T buys DirectTV for $48.5B, becomes biggest pay-TV

Following US Federal Communications Commission’s approval, AT&T now has 26.4 million subscribers

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

AT&T now has 26.4 million cable and satellite TV subscribers in the US and 19 million in Latin America following the merger with the country’s biggest satellite and traditional TV provider DirectTV.

After more than a year of review, the deal worth $48.5 billion has gotten regulatory approval from the US Federal Communication (FCC) on Friday, after the US Justice Department had already acknowledged it on Tuesday.

“The conditions imposed by the Commission address potential harms presented by the combination,” the FCC said. “The conditions also ensure that the benefits of the merger will be realized.”

While DirectTV’s shares rose by 1.5 percent, AT&T shares enjoyed a 1.1 percent rise at $34.29.

“We'll now be able to meet consumers' future entertainment preferences, whether they want traditional TV service with premier programming, their favourite content on a mobile device, or video streamed over the Internet to any screen," AT&T CEO Randall Stephenson said in a statement.

AT&T will also invest in high-speed internet connections build-up to 12.5 million locations and provide affordable broadband access to low-income customers according to its pledge to the FCC.

TRTWorld and agencies