Posted On 19 May 2014
The Telecommunication company AT & T Inc. would buy the satellite TV company DirecTV in $ 48.500 million dollars. This will allow them to compete with Comcast -Time Warner Cable.
The proposal of the AT & T combination is waiting for the U.S. government approval. This would improve their internet service giving their U- verse TV subscribers a satellite video service.
AT & T now offers a plan for high speed internet in a package that includes DirecTV, television service. There are currently 5.7 million subscribers of U- verse TV and 20.3 million of DirecTV in the United States. The results of combining this companies would serve 26 million customers, making it the second largest pay TV operator, after Comcast -Time Warner Cable , which has 30 million customers.
Companies would complete the deal in the next 12 months after a review of the regulatory authorities.
Comcast Corp. and Time Warner Cable do not compete in the same territory; unlike U –verse, which is offered in 22 states and DirectTV located throughout the country, the combination would reduce opportunities for paid TV providers, from four to three, for the 25 % of U.S. homes, according to Ben Swinburne, analyst from Morgan Stanley.