We mentioned not long ago that AT&T and DirecTV hoped to announce a purchase agreement as early as today. That purchase agreement has now been announced with AT&T and DirecTV entering into a definitive agreement that will see AT&T buy the satellite provider. The deal will see AT&T pay $95 per share for DirecTV.
The purchase will be funded in cash and stock and was agreed to unanimously by the boards of both companies. AT&T says that the deal will create a combined company that is a content distribution leader in the mobile, video, and broadcast platforms.
Once completed, the deal will allow the companies to offer consumers bundles that feature video, high-speed internet, and mobile service through its sales channels. AT&T says that DirecTV will continue to be headquartered in El Segundo, California after the deal closes. The breakdown on the purchase price sees DirecTV shareholders get $28.50 per share in cash and $66.50 per share in AT&T stock. The equity value on the deal is $48.5 billion and a total transaction value is $67.1 billion when DirecTV's net debt is included.