DALLAS, July 24, 2015
/PRNewswire/ -- AT&T Inc. (NYSE:T) has completed its
acquisition of DIRECTV. The newly combined company – the largest
pay TV provider in the United
States and the world – will offer millions of people more
choices for video entertainment on any screen from almost anywhere,
any time.
"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 favorite 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 said. "We're now a fundamentally different
company with a diversified set of capabilities and businesses that
set us apart from the competition."
AT&T now is the largest pay TV provider in the U.S. and the
world, providing 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 U.S.
and Mexico; offers 4G LTE mobile
coverage to nearly 310 million people in the U.S.; covers 57
million U.S. customer locations with high-speed Internet; and has
nearly 16 million subscribers to its high-speed Internet
service.
Current customers of AT&T and DIRECTV do not need to do
anything as a result of the merger. They'll continue to receive
their same services, channel lineups, and customer care. Customer
account information, online access and billing arrangements remain
the same. 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.
With the completion of its DIRECTV acquisition, AT&T will
continue to deploy its all-fiber GigaPower Internet access service
– the company's highest-speed Internet service, which allows you to
download a TV show in as little as three seconds. When the
expansion is complete, AT&T's all-fiber broadband footprint
will reach more than 14 million customer locations.
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 U.S. 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 a result of this transaction, AT&T leads the industry in
offering consumers premier content, particularly live sports
programming, such as the exclusive rights to NFL SUNDAY TICKET,
which gives customers every out-of-market NFL game, every Sunday
afternoon, on any screen – TV, mobile devices or PCs. Additionally,
the company owns ROOT SPORTS, one of the nation's premier regional
sports networks, and has stakes in The Tennis Channel, MLB Network,
NHL Network, and GSN (Game Show Network).
AT&T is also developing unique video offerings for consumers
through, among other initiatives, its Otter Media joint venture
with The Chernin Group. The joint venture was established to invest
in, acquire and launch over-the-top (OTT) video services. This
includes its purchase of a majority stake in Fullscreen,
a global online media company that works with more than
50,000 content creators who engage 450 million subscribers and
generate 4 billion monthly views.
Under the terms of the merger, DIRECTV shareholders received
1.892 shares of AT&T common stock, in addition to $28.50 in cash, per share of DIRECTV. AT&T
will provide complete updated 2015 financial guidance at a
conference the company will host for financial analysts in the
coming weeks. The conference will be webcast to the public.
The DIRECTV acquisition significantly diversifies AT&T's
revenue mix, products, geographies and customer bases. As a result
of this acquisition, as well as AT&T's acquisition of Iusacell
and Nextel Mexico, AT&T expects that, by the end of 2015, its
largest revenue streams will be, in descending order: Business
Solutions (both wireless and wireline); Entertainment &
Internet; Consumer Mobility; and International Mobility and
Video.
As part of the Federal Communications Commission's approval of
the transaction, AT&T has agreed to the following conditions
for the next four years:
- Within 4 years, AT&T will offer its all-fiber Internet
access service to at least 12.5 million customer locations, such as
residences, home offices and very small businesses. Combined
with AT&T's existing high-speed broadband network, at least
25.7 million customer locations will have access to broadband
speeds of 45Mbps or higher.
- Within its wireline footprint, the company will offer
1Gbps service to any eligible school or library requesting E-rate
services, pursuant to applicable rules, within the company's
all-fiber footprint.
- Within AT&T's 21-state wireline footprint, it will offer
discounted fixed broadband service to low-income households that
qualify for the government's Supplemental Nutrition Assistance
Program. In locations where it's available, service with speeds of
at least 10Mbps will be offered for $10 per month. Elsewhere, 5Mbps service will be
offered for $10 per month or, in some
locations, 3Mbps service will be offered for $5 per month.
- AT&T's retail terms and conditions for its fixed broadband
Internet services will not favor its own online video programming
services. AT&T can and will, however, continue to offer
discounted integrated bundles of its video and high-speed Internet
services.
- AT&T must submit to the FCC new interconnection agreements
it enters into with peering networks and on-net customers for the
exchange of Internet traffic. The company will develop, in
conjunction with an independent expert, a methodology for measuring
the performance of its Internet traffic exchange and regularly
report these metrics to the FCC.
- AT&T will appoint a Company Compliance Officer to develop
and implement a plan to ensure compliance with these merger
conditions. Also, the company will engage an independent,
third-party compliance officer to evaluate the plan and its
implementation, and submit periodic reports to the
FCC.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc.
1 Includes DIRECTV Latin America pay TV
subscribers as of March 31, 2015,
including subscribers of Sky Mexico, in which DIRECTV holds a
minority stake.
About AT&T
AT&T Inc. (NYSE:T) helps millions around the globe connect
with leading entertainment, mobile, high speed Internet and voice
services. We're the world's largest provider of pay TV. We have TV
customers in the U.S. and 11 Latin American countries. In the U.S.,
our wireless network offers the nation's strongest LTE signal and
the most reliable 4G LTE network. We offer the best global wireless
coverage*. And we help businesses worldwide serve their customers
better with our mobility and secure cloud solutions.
Additional information about AT&T products and services is
available at http://about.att.com. Follow our news on Twitter at
@ATT, on Facebook at http://www.facebook.com/att and YouTube at
http://www.youtube.com/att.
© 2015 AT&T Intellectual Property. All rights reserved.
AT&T, the Globe logo and other marks are trademarks and service
marks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of
their respective owners.
Reliability and signal strength claims based on nationwide
carriers' LTE. Signal strength claim based ONLY on avg. LTE signal
strength. LTE not available everywhere.
*Global coverage claim based on offering discounted voice and
data roaming; LTE roaming; voice roaming; and world-capable
smartphone and tablets in more countries than any other U.S. based
carrier. Coverage not available in all areas. Coverage may vary per
country and be limited/restricted in some countries.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release
contains financial estimates and other forward-looking statements
that are subject to risks and uncertainties, and actual results may
differ materially. A discussion of factors that may affect future
results is contained in AT&T's filings with the Securities and
Exchange Commission. AT&T disclaims any obligation to update or
revise statements contained in this news release based on new
information or otherwise.
Logo -
http://photos.prnewswire.com/prnh/20140408/CG99935LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/att-completes-acquisition-of-directv-300118564.html
SOURCE AT&T Inc.