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General

AT&T takeover of DirecTV: a defensive move via horizontal integration

Tuesday 20 May 2014 | 13:17 CET | Author: Tim Poulus | Market Commentary
AT&T and DirecTV have reached agreement on a merger. AT&T is offering USD 67.1 billion in cash and shares as well as taking over USD 18.6 billion in debt from DirecTV. This values DirecTV at 7.7x expected annual EBITDA this year. The companies expect to close the deal within 12 months. The cash part of the transaction will be financed in part from the sale of AT&T's stake in Americal Movil. According to Reuters, there was no break-up fee agreed if the takeover is rejected by regulators. However, AT&T must pay USD 1.445 billion if DirecTV's shareholders reject the acquisition. 

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Categories: General
Companies: DirecTV
Countries: Latin America / United States
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Comments

Great information that's why I keep following you and your news
Roberto Fernandez @ 26/9/2014 - 13:11


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