AT&T in Talks to Buy Satel­lite TV Provider DirecTV for $50 bil­lion

The Economic Times - - Busi­ness Of Brands -

AT&T Inc is in ac­tive talks to buy satel­lite TV provider DirecTV and may com­plete a deal in the next few weeks that could be worth close to $50 bil­lion, two peo­ple fa­mil­iar with the mat­ter said on Mon­day. The sec­ond-largest wire­less op­er­a­tor is dis­cussing an of­fer in the low- to mid-$90s per share for DirecTV, one of the peo­ple said, com­pared with the com­pany's clos­ing price of $87.16 on Mon­day. A bid near $95 per share would value DirecTV at more than $48 bil­lion based on its shares out­stand­ing, and would rep­re­sent a pre­mium of more than 20% to its stock price be­fore news of AT&T's in­ter­est first emerged on May 1. The deal price has yet to be fi­nal­ized and terms could still change, the peo­ple said, adding that dis­cus­sions are con­tin­u­ing. Other de­tails also have yet to be worked out, such as a break-up fee as well as a po­ten­tial role for DirecTV Chief Ex­ec­u­tive Of­fi­cer Mike White, the sec­ond per­son said.

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