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AT&T to buy DirecTV under definitive purchase agreement

AT&T and DirecTV enter into purchase agreement valued at $67.1 billion and have plans to offer bundles with TV, phone, and internet to customers

By: Shane McGlaun from May 19, 2014 @ 5:38 CDT

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.

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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.

NEWS SOURCES:about.att.com

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