AT&T has completed its acquisition of DirecTV, following approval from the FCC. The acquisition of the satellite TV provider makes AT&T the largest pay-TV operator in the US with a total 19 million customers. The company will build off DirecTV's customer base to expand its broadband and telephony base, offering bundles of TV, broadband and mobile services. The deal also expands AT&T's growing presence in LatinAmerica with over 191 million DirecTV cstomers there.
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 CEO Randall Stephenson. DirecTV's current CEO Mike White plans to retire.
As earlier disclosed, the FCC's approval comes with conditions to maintain and expand internet access services. AT&T will be required to provide FTTP broadband to 12.5 million customer locations as well as to schools and libraries eligible for e-rate support. In addition, AT&T is prohibited from discriminating against online video services using its network and must submit its internet interconnection agreements for Commission review. Finally, AT&T will offer broadband services to low-income consumers at discounted rates. The conditions will apply for four years.
The acquisition of DirecTV was first announced in May 2014 for USD 48.5 billion. DirecTV shareholders receive 1.892 shares of AT&T and USD 28.50 in cash for each share they hold.
