The $48.5 billion dollar cash and stock deal was announced in May of this year and the two hope to complete it by May of next year. When the deal was announced, the companies told DirecTV (NASDAQ:DTV) shareholders that they would receive 10% premium with and agreed share price of $95.
AT&T’s proposal for DirecTV
AT&T Inc. (NYSE:T) said on Sunday that it had agreed to buy DirecTV (NASDAQ:DTV) in a cash and stock deal worth $48.5 billion, marking the second proposed deal this year to shake up the pay-television business.DirecTV shareholders will receive a total of $95 per share, with $28.50 to be paid in cash and $66.50 paid in stock, the companies said Sunday in a statement. The $95 per share offer is a 10 percent premium over DirecTV’s closing stock price Friday.
“The transaction combines complementary strengths to create a unique new competitor with unprecedented capabilities in mobility, video, and broadband services,” the companies said in the joint statement.
The acquisition, which the companies expect to close within 12 months, creates a powerhouse for services in the home, allowing AT&T Inc. (NYSE:T) to pair its own wireless network with DirecTV (NASDAQ:DTV)’s satellite TV service, which is available nationwide. The deal comes as AT&T faces a slowdown in growth in its core wireless business, as well intense competition for its wireline service, a factor in the proposed $45.2 billion merger between Comcast and Time Warner Cable.
DirecTV shareholders approve AT&T’s buy offer
DirecTV shareholders on Thursday voted to approve AT&T’s offer to buy the satellite TV company for $48.5 billion. DirecTV said 99 percent of shareholders voted in favor of the deal.
The proposed deal, announced in May, will give AT&T access to a nationwide television service it can pair with its wireless offering. AT&T believes the expanded reach and ability to bundle the two services together will allow it to better compete with both wireless and cable competitors. Additionally, the company could push the bundles at its chain of nationwide wireless stores.
AT&T Inc. (NYSE:T) currently offers television and broadband service through its U-Verse platform, but its availability is limited in regions where it offers telephone service as well. As such, the company is keen to bring DirecTV (NASDAQ:DTV) into the fold.
“We appreciate DirecTV shareholders’ approval and look forward to continuing our work with the various regulatory agencies reviewing the deal to gain their approval as well,” said an AT&T spokesman.
DirecTV (NASDAQ:DTV) and AT&T Inc. (NYSE:T) are still awaiting approval from the Federal Communications Commission and the Justice Department. It is expected to close in the first half of 2015.