AT&T, DirecTV may join forces
NEW YORK — AT&T is in advanced talks to acquire DirecTV, the largest U.S. satellite-TV provider, for about $100 per share, according to people familiar with the matter. DirecTV management will continue to run the company as a unit of AT&T and DirecTV Chief Executive Officer Mike White plans to retire after 2015, said the people, asking not to be named because the information is private. The $100 per share price values El Segundo, Calif.- based DirecTV at about $50 billion. That’s about 29 percent above DirecTV’s price on April 30, before initial reports of the talks. DirecTV rose 6 percent to $92.50 as of 5:15 p.m. in New York, after closing regular trading at $87.16 a share earlier on Monday. The purchase would give AT&T a satellite-TV provider to combine with its phone and broadband Internet offerings as competition ramps up. A deal could allow AT&T to offer U.S. subscribers a bundle of wireless, television, phone and high-speed broadband services. DirecTV and AT&T are planning on a 12-month regulatory process to review the deal, one of the people said.
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