AT&T to acquire DirecTV

[Naimfan]

This should be great for consumers!

Not.

http://www.washingtonpost.com/busin...ec1-11e3-810f-764fe508b82d_story.html?hpid=z1

 

[maflynn]

I'm not too jazzed up about this, because DirecTV has great customer support.

I know they have to pass regulatory muster but I can't see anything that will block the merger.

I also fail to see the synergy in them buying them. At one point I read somewhere that Directv and dish network were talking informally about a possible merger. I wonder if the satellite tv business is heading south

 

[Naimfan]

I don't think it makes sense at all - landline and satellite are flat or declining.

The issue with satellite is that it can't provide high-speed internet access. When satellite worked, it could leverage content, but now, the same content is available from a multitude of sources. From that perspective, Comcast/TW makes FAR more sense.

 

[LethalWolfe]

AT&T has broadband but they are a little guy in paid TV offerings. DTV is a big dog in paid TV offerings but has no broadband. DTV also has the NFL Sunday Ticket deal (and AT&T says contractually they can abort the merger if DTV fails to renew the Sunday Ticket deal). If this deal goes through AT&T/DTV will be the 2nd largest pay TV service behind Comcast/TW (currently AT&T is the 7th largest cable/sat provider in terms of subscriber numbers).

This merger seems to address the big short comings each company has, and given what companies are left on the laying field there's not many options.