At & T And Directv Merger

1441 Words Nov 15th, 2014 6 Pages
AT&T and DirecTV Merger AT&T recently acquired DirecTV after the latter’s shareholders voted to endorse the acquisition or merger. The acquisition was first endorsed by the boards of these companies in May 2014 before being subjected to a review by anti-trust regulators in the Department of Justice and Federal Communications Commission (England-Nelson, 2014). The approval of the acquisition would result in the merger of the country’s largest wireless carrier with the biggest satellite TV provider in the country. The merger between these two firms is geared towards creation of a leading content provider across various platforms i.e. video, mobile, and broadband services. However, the acquisition was influenced by various factors and is associated with several significant effects in light of the organizational structure.
Circumstances Resulting in the Acquisition As previously mentioned, the acquisition of AT&T and DirecTV was recently approved by the boards of both companies. The deal implied that the AT&T would have to pay the shareholders of DirecTV $95 per share as well as the company’s debt that would make the total transaction value to amount to $67.1 billion. The acquisition or merger between these two companies was fueled by various factors that were geared towards creating one company that will be strategically positioned to accomplish significant incremental growth. The growth would be achieved through providing customers competitive and innovative services…
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