AT&T and DirecTV to Tie the Cord

Share this content:

I mean, who isn't mega-merging these days? Comcast and Time Warner Cable, potentially Sprint and T-Mobile—and now AT&T is buying DirecTV for $48.5 billion smackers.



Spring is in the air and so, it seems, are multibillion-dollar mergers. The latest mega-merger to hit the literal airwaves is that of AT&T and satellite television provider DirecTV. The former is reportedly in proceedings to acquire the latter for nearly $50 billion dollars.

Considering cord cutting has recently become a national pastime (personally, I don't own a television—let alone pay for cable—and I know fewer and fewer people who do and are), it's an interesting move on AT&T's part. Why would the telecom want to buy into a seemingly dying—or if not dying, at least stagnant—industry? DirecTV's subscriber base grew less than 1% last year. Netflix's global streaming subscriber base? That went up more than 33% year-over-year in the first quarter of 2013.

One reason is definitely reactionary: The space is converging. Comcast joining with Time Warner Cable is no doubt weighing heavily on the minds of both AT&T and DirecTV execs. A second motivation could be a bid to pump up the user base of AT&T's triple play offering U-verse with exclusive content like the NFL Sunday Ticket, which DirecTV currently holds the sole rights to. Some analysts are going so far as to say that the entire deal could hinge on the NFL access.

But is the deal in the consumer's best interests? Sen. Al Franken (MN—D) for one is skeptical, noting in an open letter that, “We're moving toward an industry with fewer competitors—where corporations are getting bigger and bigger and gaining more and more control over the distribution of information.”

Despite some concerns, the deal apparently has a good chance of getting the FCC's stamp of approval because 1) it'll help bolster a fading sector, and 2) it'll create a viable competitor for whatever Frankenstein's monster Comcast and Time Warner becomes.

Dunno, maybe AT&Tv?

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above