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AT&T REPORTEDLY CLOSE TO BUYING DIRECTV FOR $50 BILLION

May 13, 2014 by · Leave a Comment 

AT&T is likely to reach a deal to buy DirecTV for nearly $50 billion in cash and stock within the next two weeks, the Wall Street Journal and Bloomberg News reported today (Tuesday, citing unnamed people familiar with the matter. The acquisition would give AT&T the added benefit of allowing it to free up valuable bandwidth on its Internet connections. DirecTV is looking favorably at the deal, the Journal suggested, because it is well aware that cord cutting is increasing and that while land-based pay-TV providers are able to offset the loss of traditional subscribers by offering high-speed Internet services, delivering the Internet by satellite is cumbersome at worst and erratic at best. Under the plan being discussed, Bloomberg said, current DirecTV management would remain in place with the company functioning as a separate unit of AT&T.