Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    AT&T Receives FCC Approval on DirecTV Acquisition

    By
    Todd R. Weiss
    -
    July 24, 2015
    Share
    Facebook
    Twitter
    Linkedin
      AT&T

      AT&T’s $48.5 billion proposal to acquire satellite-TV provider DirecTV today received Federal Communications Commission approval, causing AT&T to quickly announce the closing of the deal it’s been awaiting since May 2014.

      “Combining DirecTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service,” Randall Stephenson, AT&T chairman and CEO, said in a statement. “We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen.”

      The now-approved acquisition allows AT&T “to significantly expand our high-speed Internet service to reach millions more households, which is a perfect complement to our coast-to-coast TV and mobile coverage,” Stephenson continued. “We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition.”

      The closing of the merger was made possible after the FCC announced late on July 24 that its members voted to approve the transaction under several conditions, including that AT&T expand its deployment of high-speed, fiber-optic broadband Internet access service to 12.5 million customer locations, as well as provide lower rates for services to schools and libraries, according to the FCC. AT&T and its DirecTV unit are also prohibited from using discriminatory practices to harm online video distribution services and must submit so-called Internet interconnection agreements to the FCC for review under the approval. Finally, the company will also be required to offer discounted broadband services to low-income consumers under the terms of the FCC’s approval. The conditions for the deal are in effect for four years.

      “The conditions imposed by the Commission address potential harms presented by the
      combination of AT&T, one of the nation’s largest telephone and Internet service providers, and
      DirecTV, the nation’s largest satellite video provider,” the FCC said in a statement. “The conditions also ensure that the benefits of the merger will be realized.”

      The completed acquisition means that AT&T is now the largest pay TV provider in the United States and the world, servicing more than 26 million customers in the United States and more than 19 million customers in Latin America, including Mexico and the Caribbean, according to the company. AT&T also says it has more than 132 million wireless subscribers and connections in the United States and Mexico, while offering 4G LTE mobile coverage to almost 310 million people in the United States.

      The integration of the two merged companies will occur over the coming months, and customers won’t have to take any actions as a result of the transaction, the company announced. “In the coming weeks, AT&T will launch new integrated TV, mobile and high-speed Internet offers that give customers greater value and convenience,” the company said.

      Leading the combined DirecTV and AT&T Home Solutions operations will be John Stankey, who will report to Stephenson, while DirecTV president, chairman and CEO Mike White is retiring and leaving the company.

      Under the terms of the merger, DirecTV shareholders are receiving 1.892 shares of AT&T common stock, in addition to $28.50 in cash, per share of DirecTV.

      AT&T is also required to appoint a company compliance officer to develop and implement a plan to ensure compliance with the FCC’s merger conditions. It will also have to hire an independent, third-party compliance officer to evaluate the plan and its implementation, and submit periodic reports to the FCC.

      The proposed AT&T acquisition of DirecTV took a big step forward on July 22, when FCC Chairman Tom Wheeler issued his recommendation that the commission vote to approve the deal, which has been under review since it was first raised in May 2014, according to an earlier eWEEK report. The Department of Justice has previously said that it does not see potential antitrust law violations in an AT&T-DirecTV merger and does not plan to oppose it. This means that the FCC’s approval was the last major legal requirement for the deal.

      Todd R. Weiss
      As a technology journalist covering enterprise IT for more than 15 years, I joined eWEEK.com in September 2014 as the site's senior writer covering all things mobile. I write about smartphones, tablets, laptops, assorted mobile gadgets and services,mobile carriers and much more. I formerly was a staff writer for Computerworld.com from 2000 to 2008 and previously wrote for daily newspapers in eastern Pennsylvania. I'm an avid traveler, motorcyclist, technology lover, cook, reader, tinkerer and mechanic. I drove a yellow taxicab in college and collect toy taxis and taxi business cards from around the world.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×