According to nationwide reports in the US, AT&T is considering an offer for the company, valuing it at approximately $95 per share. If the offer is made, it will value DirecTV at $48 billion based on outstanding shares, and represent a premium of over 20% of its present stock price.
Rumours of AT&T’s interest first emerged at the beginning of this month, and the deal price is yet to be finalised.
There are still several uncertainties regarding the deal, including a future potential role for DirecTV CEO Mike White, if AT&T secures the takeover.
AT&T’s rumoured interest represents yet another potential mega-deal in the telecoms, cable and satellite sector. Comcast is in the middle of securing a $45 billion takeover of Time Warner Cable, and Verizon completed its deal to acquire Vodafone’s stake in Verizon Wireless for approximately $130 billion last year.
If AT&T secures the DirecTV acquisition, it would create a direct competitor to a merged Comcast and Time Warner Cable. Analysts are predicting that such a tie-up will face intense regulation given increasing consolidation in the cable TV sector.
There have been rumours in the past that the market could see a deal between smaller satellite rival Dish Networks and DirecTV, but a deal has never surfaced since an offer was made ten years ago.
