AT&T is currently scheduled to announce their recent acquisition of the largest satellite company in the U.S., DirecTV this Sunday. Plans of the company for the announcement to be made before market opens on Monday and ahead of time than the anticipated schedule by observers was informed to BuzzFeed, according to a source acquainted with DirecTV's arrangements.
The source also said "The deal is done," reporting about the current acquisition pointing out that the CEO of DirecTV, Mike White has already provided information to the company's senior executives that the deal is completed and that they plan to release the confirmation to the public this Sunday.
In other reports, the New York Times and Bloomberg marked the recent acquisition with an estimate of $50 billion. The company, DirecTV is known to be the largest satellite operator in the U.S., with around 20 million subscribers, which is considered to be the most essential acquisition of AT&T so far, in order to capitalized on its expansion towards its reach and leverage for providing video content throughout the country. The deal is also considered to greatly affect the AT&T's current U-verse digital TV service which only has less than 6 million subscribers.
AT&T's acquisition deal for DirecTV has been noted to be a very important milestone in order to take control and access on the profitable company that was reported to have an estimated $2.6 billion in cash flow rate last year. The move is considered to open up new acquisitions and can accumulate funding for newer initiatives by AT&T.
The deal between AT&T and DirecTV proves that both companies are gearing towards the consolidation of telecommunications companies that are planning to take a larger portion of the market and provide more control over content and its delivery to its customers. The merger is evident that the companies want to boost their revenue per customer and to add value to their current shareholders by offering additional product options with its streaming and wireless technology.
Industry professionals has elaborated that the current acquisition of AT&T over DirecTV will definitely slim down competition towards the cable and satellite market throughout the country, and a possible result of this deal will encompass stronger TV everywhere services, with the combination of satellite, wireless and fiber -optic networks.
