Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Report: AT&T is looking to acquire DirecTV

The combined company would have about 27 million TV subscribers

Article comments

AT&T has approached satellite provider DirecTV about a possible acquisition, in a bid to more closely integrate TV and broadband services, according to the Wall Street Journal.

The deal is expected to be worth more than US$40 billion, and would combine DirecTV's approximately 20 million TV subscribers with AT&T's already existing U-verse TV offering, which added 201,000 subscribers in the first quarter to reach 5.7 million.

The possible deal comes as the U.S. TV sector is in a state of flux, after cable giant Comcast announced a $45.2 billion deal to purchase competing cable television and broadband provider Time Warner Cable in February. That still has to win regulatory approval in the face of considerable opposition.

In Europe, Vodafone has acquired Germany's largest cable operator, Kabel Deutschland, and Spanish cable operator Ono. In France, cable operator Numéricable is buying mobile and fixed-line operator SFR.

Telecom operators and pay-TV providers around the world are under pressure from Internet-based voice and video services, respectively. Shrinking revenues from voice and messaging thanks to competition from the likes of WhatsApp and Skype are forcing operators to look for new revenue streams. At the same time the battle for viewers is growing more intense thanks to content becoming available from a growing number of companies as well as products such as Amazon's new Fire TV.

In 2013, DirecTV's U.S. revenues increased 6 percent to $24.68 billion compared to the prior year thanks to an increasing average revenue per user. However, net subscriber additions decreased from 199,000 to 169,000 in the prior year. The decline in gross additions was in part due to a more challenging competitive environment and mature industry, DirecTV said earlier this year.

AT&T and DirecTV both declined to comment on the possibility of an acquisition.

Send news tips and comments to mikael_ricknas@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *