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