AT&T considers bid for EchoStar or DirecTV: report | News | Market News | Reuters
NEW YORK (Reuters) - Communications giant AT&T (T.N: Quote, Profile, Research) has been contemplating a big purchase in the satellite television sector and now appears to be poised to do a deal, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
AT&T has been consulting lawyers in Washington, D.C., to see how long it would take to get government approval to buy either EchoStar Communications Corp (DISH.O: Quote, Profile, Research) or DirecTV Group Inc (DTV.N: Quote, Profile, Research), the paper said.
AT&T could disclose a bid to buy either of them before year-end in the hope of getting approvals before a new administration takes office, the paper said.
There has been recent market speculation that AT&T could make a bid for EchoStar to expand into satellite television to better compete with rivals like Verizon (VZ.N: Quote, Profile, Research).
AT&T Chief Financial Officer Rick Lindner declined to comment on the matter on a conference call with analysts on Tuesday.
The paper said EchoStar would be a less complicated acquisition, since it is mostly held by institutional shareholders. EchoStar has a market value of about $10 billion.
DirecTV, however, is much larger, with a market value of about $30 billion, and is 39.5 percent owned by Rupert Murdoch's News Corp. (NWSa.N: Quote, Profile, Research).
Last year, John Malone's Liberty Media Corp. (LINTA.O: Quote, Profile, Research) agreed to buy News Corp.'s stake in DirecTV, though the deal is still awaiting approval by regulators.
NEW YORK (Reuters) - Communications giant AT&T (T.N: Quote, Profile, Research) has been contemplating a big purchase in the satellite television sector and now appears to be poised to do a deal, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
AT&T has been consulting lawyers in Washington, D.C., to see how long it would take to get government approval to buy either EchoStar Communications Corp (DISH.O: Quote, Profile, Research) or DirecTV Group Inc (DTV.N: Quote, Profile, Research), the paper said.
AT&T could disclose a bid to buy either of them before year-end in the hope of getting approvals before a new administration takes office, the paper said.
There has been recent market speculation that AT&T could make a bid for EchoStar to expand into satellite television to better compete with rivals like Verizon (VZ.N: Quote, Profile, Research).
AT&T Chief Financial Officer Rick Lindner declined to comment on the matter on a conference call with analysts on Tuesday.
The paper said EchoStar would be a less complicated acquisition, since it is mostly held by institutional shareholders. EchoStar has a market value of about $10 billion.
DirecTV, however, is much larger, with a market value of about $30 billion, and is 39.5 percent owned by Rupert Murdoch's News Corp. (NWSa.N: Quote, Profile, Research).
Last year, John Malone's Liberty Media Corp. (LINTA.O: Quote, Profile, Research) agreed to buy News Corp.'s stake in DirecTV, though the deal is still awaiting approval by regulators.
