After the Comcast bid to buy Time Warner I guess it should come as no surprise that this is a possibility:
AT&T Inc., the second-biggest U.S. mobile-phone carrier, approached DirecTV about possibly acquiring the satellite-television company, the Wall Street Journal said, citing people familiar with the situation.
It’s unclear whether the companies are in detailed talks, although DirecTV would be open to a deal, the report said, citing an unidentified person. The deal would probably be worth at least $40 billion, the Journal said.
DirecTV is the largest U.S. satellite-TV operator, with about 20 million paying subscribers and a market value of more than $39 billion.
More:
AT&T has approached DirecTV about a possible acquisition of the satellite-TV firm, say people familiar with the situation, the latest sign of a possible shake-up in the television industry.
A combination of AT&T with satellite-TV firm DirecTV would create a pay television giant close in size to where Comcast Corp. will be if it completes its pending acquisition of Time Warner Cable.
With the
death of Net Neutrality a distinct possibility, we of course should be a bit concerned. This does not help ease those concerns:
Whether regulators would agree to a DirecTV-AT&T merger is a major question. Comcast's Time Warner Cable deal faces tough regulatory scrutiny and a second pay-TV merger would likely intensify regulatory and political questions surrounding consolidation in the industry.
Any acquisition would likely be evaluated by the Justice Department for its impact on competition and would require approval by the Federal Communications Commission. The companies would have to prove to the FCC that the transaction would be in the public interest and the combined company would be able to offer consumer benefits not possible outside the merger. However, a person familiar with the FCC's thinking predicted the merger would have a solid chance at approval because offering video or voice service alone is viewed as a dying business and the combined company would be in a position to compete with Comcast, the leading cable and broadband provider.
See? Because all of these mergers are being allowed stand-alone services are dying out! The solution? More mergers!
Observers also noted that the deal would increase the pressure on Dish Network to enter into a merger with a wired or wireless broadband provider.