The newly combined companies, which are AT&T and DIRECTV, the largest pay TV
provider in the United States and the world will offer millions of people more choices for video
entertainment on any screen from almost anywhere, any time. AT&T and DIRECTV have came
together to bring customer the best of both worlds: outstanding entertainment, the coverage and
reliability of the AT&T wireless network, and great value on video, high-speed Internet, and
wireless bundles. Together, company are working to bring customer a greater video distribution
scale across mobile, video, and broadband networks, which gives customer a stronger alternative
to cable. In July, 2015 the acquisition was completed.
AT&T Inc. is an American multinational telecommunications corporation,
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AT&T the world’s largest provider of pay TV. AT&T have TV customers in the
U.S. and 11 Latin American countries. In the U.S., their wireless network offers the nation’s
strongest LTE signal and the most reliable 4G LTE network. AT&T offers the best global
wireless coverage. And AT&T helps businesses worldwide serve their customers better with
AT&T mobility and secure cloud solutions. As of May 2014, AT&T is the 23rd-largest company
in the world as measured by a composite of revenues, profits, assets and market value. This
transaction allows AT&T to significantly expand our high-speed Internet service to reach
millions more households, which is a perfect complement to AT&T coast-to-coast TV and
mobile coverage. AT&T now a fundamentally different company with a diversified set of
capabilities and businesses that set AT&T apart from the competition.
DirecTV is an American direct broadcast satellite service provider and broadcaster based
in El Segundo, California. Its primary competitors are Dish Network and cable
television providers In USA. DIRECTV is a provider of digital television entertainment in
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(INVESTORS, 2015)
AT&T announced in 2012 that John Stankey will be CEO of AT&T Entertainment &
Internet Services, responsible for leading its combined DIRECTV and AT&T Home Solutions
operations. Stankey will report to Stephenson only. DIRECTV President, Chairman and CEO
Mike White announced his plans to retire after this transaction. Also Stephenson says “Mike is
one of the world’s top CEOs and a great leader who built DIRECTV into a premier TV and
video entertainment company spanning the U.S. and Latin America. He has been a terrific
partner and friend, and his legacy will be an important part of our combined company.”
What is the rationale for the acquirer and target firms to merge?
Last decade, telecom and cable TV industries searches for consolidations for their company
to increase the revenue however, nowadays people created new type of trend that allows people
to use internet instead of cable TV to watch any TV Shows or Movie. This trend has enormous
effect on cable TV providers to decrease their demand while the companies such as