Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
Build Apps 5x Faster
For Half the Cost Enterprise Cloud Computing
On Force.com
You are here: Home / Business Briefing / AT&T To Buy DirecTV for $48.5 Billion
DDoS Protection Powered By Verisign
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 / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
MAY
19
2014


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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
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.
MORE IN BUSINESS BRIEFING
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
HP Previews ProLiant Gen9 Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 

Mobile Technology Spotlight
Apple Sets Sept. 9 Event: iPhone 6, iWatch on Tap?
Save the date. Apple formally announced that its long-anticipated “special event," will take place on September 9. Does the tech giant have the iPhone 6, and the iWatch up its sleeve?
 
Samsung's New Smart Watch Makes Calls Without Phone
Following up on the Gear 2, Samsung has unveiled a new 3G smart watch, the Gear S, that stands out in its ability to make phone calls and send text messages without a smartphone.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

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.