AT&T and DirecTV made it official Sunday, announcing a plan for the telco to buy DirecTV for $48.5 billion. Renewing DirecTV’s NFL Sunday Ticket deal takes on renewed importance, with AT&T having the ability to back out of the deal in the “unlikely event” that it’s not renewed on substantially the terms discussed between the parties, according to an SEC filing. It’s not clear if exclusivity is necessary.

DirecTV CEO Mike White, speaking at an investor conference last week, indicated he didn’t expect there to be any problems renewing the deal. He’s made similar statements several times over the past few months.

Either party can terminate the agreement if the merger is not consummated by May 18, 2015. If DirecTV opts for a higher bidder, AT&T is entitled to a $1.4 billion break-up fee.
The deal needs approval by the FCC, DOJ and DirecTV shareholders as well as some US states and Latin America countries, but the companies believe it will close in 12 months. Here are some highlights from the announcement:

– The deal should be accretive within 12 months after close on free cash flow per share and adjusted EPS basis.
– Cost synergies are expected to exceed $1.6 billion annual run rate by Year 3 after closing.
– The combined company is committed to enhancing broadband to 15 million customer locations, primarily in rural areas.
– AT&T’s 2,300 retail stores and both companies’ authorized dealers will combine for a nationwide sales channel.
– The new company will offer standalone wireline broadband service at speeds of at least 6 Mbps (“where feasible,” they said) in areas where AT&T offers wireline IP broadband service today at guaranteed prices for three years after close.
– No matter what the FCC does (or doesn’t do) with net neutrality, the companies will commit to the Commission’s 2010 Open Internet protections for three years after closing.
– AT&T still intends to bid at least $9 billion in next year’s spectrum auctions.

The Daily

Subscribe
Wednesday–July 2

White Flag: Paramount’s Reason for Settling Trump Lawsuit

With news breaking overnight of Paramount Global’s $16 million settlement of President Trump’s “60 Minutes” lawsuit, the company couldn’t ignore the elephant in the room during its annual shareholder meeting Wednesday.

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Sep 11
2025 Faxies Awards Faxies Nominations Open! Final deadline: 4/4/25
Full Calendar

Jobs

Seeking an INDUSTRY JOB or hiring for one?
VIEW JOBS

In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors. The result will be an even more robust industry job board, to help both employers and job seekers.

Contact Carley Ashley, [email protected], for more information about posting a job on the website and our Jobs newsletter, sent twice weekly to 85,000 media professionals.