US telco AT&T has completed its $48.5 billion (€44.2bn) acquisition of pay-TV provider DirecTV following the Federal Communications Commission’s approval – with conditions – of the deal. The FCC determined that granting the merger application was in the public interest. The newly-combined company will become the largest pay-TV provider in the United States and the world.
“Combining DirecTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service,” said Randall Stephenson, AT&T chairman and CEO. “We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favourite content on a mobile device, or video streamed over the Internet to any screen.”
“This transaction allows us to significantly expand our high-speed Internet service to reach millions more households, which is a perfect complement to our coast-to-coast TV and mobile coverage,” Stephenson added. “We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition.”
AT&T will now provide service to more than 26 million customers in the United States and more than 191 million customers in Latin America, including Mexico and the Caribbean. Additionally, AT&T has more than 132 million wireless subscribers and connections in the US and Mexico; offers 4G LTE mobile coverage to nearly 310 million people in the US; covers 57 million US customer locations with high-speed Internet; and has nearly 16 million subscribers to its high-speed Internet service.
The integration of AT&T and DirecTV will occur over the coming months. In the coming weeks, AT&T will launch new integrated TV, mobile and high-speed Internet offers that give customers greater value and convenience.
AT&T announced 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. DirecTV President, Chairman and CEO Mike White announced his plans to retire.
“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 US and Latin America,” Stephenson said. “He has been a terrific partner and friend, and his legacy will be an important part of our combined company.”
As part of the FCC’s approval of the transaction, AT&T has agreed to the following conditions for the next four years: