Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Business Briefing
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Purchase of DirecTV To Make AT&T Major Player in Video

Purchase of DirecTV To Make AT&T Major Player in Video
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"Investors always want to see growth," said analyst Jeff Kagan of the AT&T deal to buy DirecTV. "This is one more way AT&T can show growth going forward. This will also let AT&T compete on a nationwide scale rather than just in its region and allow the company to offer a larger combination of satellite TV, IPTV, Internet, voice and wireless."
 


In a move to become a major player on the video front, AT&T is spending $48.5 billion for DirecTV, a satellite TV provider that delivers video on any device. Combined with AT&T's broadband network that covers 70 million customer locations, the blockbuster acquisition would create a powerhouse in mobility, video and broadband services.

Consider the breadth of the merged company, which hints at a converged future. If the deal is approved by federal regulators, AT&T will become a content distribution leader across mobile, video and broadband platforms. The scale will position AT&T to meet customer viewing demands today and in the future, spanning traditional pay TV, on-demand video services delivered over broadband, or a combination of the two. Expect a massive shake up in AT&T bundles when the deal closes.

"This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens: mobile devices, TVs, laptops, cars and even airplanes," said Randall Stephenson, AT&T chairman and CEO. "At the same time, it creates immediate and long-term value for our shareholders."

Forward-Thinking Merger

As Stephenson sees it, DirecTV was AT&T's best option because it is a premier brand in pay TV with strong content relationships and a fast-growing Latin American business. He's convinced the merged company can drive innovation and offer more competitive choices for customers. Mike White, president and CEO of DirecTV, agreed.

"U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace," White said.

One differentiator DirecTV brings to AT&T's table is live sports programming. It has the exclusive pay TV rights to NFL Sunday Ticket, which provides every out-of-market game, on TV, laptops and mobile devices every Sunday afternoon. DirecTV's content ownership includes Root Sports Network and minority stakes in the Game Show Network, MLB Network, NHL Network and the Sundance Channel.

What the Future Holds

Jeff Kagan, an independent technology analyst, said there was still plenty to learn about the deal, but so far it sounded like a smart move for AT&T because it would help the company continue growing in new ways that would keep investors, partners, and customers happy.

"Investors always want to see growth. This is one more way AT&T can show growth going forward," Kagan told us. "This will also let AT&T compete on a nationwide scale rather than just in its region and allow the company to offer a larger combination of satellite TV, IPTV, Internet, voice and wireless."

Kagan remembers the 1990s, when there were lots of small telecom companies. Since then, the industry has seen merger after merger after merger as the marketplace changed. The mergers continue, even though there are just a few large companies today.

"Tomorrow we will see even fewer competitors on a nationwide scale. We will also see unlike companies merge, creating newer and more powerful kinds of competitors," Kagan said. "I think the timing of this merger makes sense with the Comcast and Time Warner Cable merger on the table. I think either they will both be approved or denied."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Business Briefing
1.   Google Buys Contextual Image Startup
2.   Google IPO Began Decade of Big Bets
3.   FBI Cybersquad To Add Agents
4.   Android Crushing Smartphone Rivals
5.   Pre-IPO Alibaba Has Accounting Woes


advertisement
Sprint Dumps T-Mobile Merger
Looks to the future with new chief exec.
Average Rating:
Get Up! Experts Say Move It or Lose It
Sitting deemed a dangerous activity.
Average Rating:
China Puts Microsoft Under the Lens
Official anti-monopoly probe launched.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 
Premier FBI Cybersquad in U.S. To Add Agents
After helping prosecutors charge Chinese army officials with stealing trade secrets from major companies and by snaring a Russian-led hacking ring, the premier FBI cyber-squad is getting a boost.
 
Apple Opens iCloud Data Center in China
Treading lightly, Apple acknowledged it has started to store encrypted iCloud personal data of some Chinese users on servers in mainland China, operated by the state-owned China Telecom.
 

Enterprise Hardware Spotlight
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 
Cisco Axes 6,000 Employees in Restructuring Plan
Faced with declining profits, Cisco is laying off up to 6,000 employees in the months ahead -- a whopping 8 percent of its global workforce. That's in addition to the 4,000 jobs Cisco cut last year.
 
Web Slows, Have Internet Routers Reached The Limit?
If you encountered problems connecting to the Internet on August 12, you weren't alone. Networking experts blame the wide-scale slowdown on outdated routing systems that are reaching their limits.
 

Mobile Technology Spotlight
Apple Stock Soars Ahead of iPhone 6 Launch
The imminent release of the iPhone 6 -- and maybe even an iWatch -- has sent Apple's stock soaring to new heights. Considering what else the firm could have up its sleeve -- the stratosphere may be the limit.
 
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.