AT&T disappointed with offers for struggling DirecTV (3 Viewers)

MitchDeerfield

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This article states AT&T would consider a Dish merger.

AT&T to Sell DirecTV Stake | Hollywood Reporter

"On the call Thursday, Stankey hinted that the new company would consider a Dish merger, saying that the telecom giant and TPG "will be diligent about exploring second options" after the deal closes."
They can't do a merger now, it would never be approved. Maybe in five years when 5G is built out or Starlink.
 

nelson61

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Att will have 70 percent of new company and some cash

Yahoo Finance: AT&T to Spin Off Long-Suffering DirecTV in Deal With TPG.
 

Juan

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TPG is a consolidated group looking for a ROI that has nothing to do with subs, services or end user experience. This is basically a paper divestiture of debt. ATT is losing their azz on this deal while the buyer is seeking an incremental small net profit on paper.
Its a big pot of cash
 

MrDRC

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Its a big pot of cash

Actually no, it's not. It's a big pile of debt being relieved.

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The deal values the new company at $16.25 billion with about $6.4 billion of debt. That is well below the $49 billion—about $66 billion including debt—that the Dallas company paid to buy international satellite operator DirecTV in 2015. AT&T recently struck $15.5 billion off the value of the unit, reflecting the service’s dimmer prospects.

AT&T said it would get about $7.8 billion in cash from the transaction to help pay down debts. Those proceeds include $5.8 billion that the new company will borrow from banks and pay back to AT&T.
 

Juan

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Actually no, it's not. It's a big pile of debt being relieved.

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The deal values the new company at $16.25 billion with about $6.4 billion of debt. That is well below the $49 billion—about $66 billion including debt—that the Dallas company paid to buy international satellite operator DirecTV in 2015. AT&T recently struck $15.5 billion off the value of the unit, reflecting the service’s dimmer prospects.

AT&T said it would get about $7.8 billion in cash from the transaction to help pay down debts. Those proceeds include $5.8 billion that the new company will borrow from banks and pay back to AT&T.
The stock holders get cash..the new entity gets the debt...prices will keep increasing..meaning dtv will still keep losing customers...no different than when they sold landlines to frontier
 
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navychop

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Sounds like we won’t know subscriber losses to compare to Dish.

I certainly don’t want to see a merger. I don’t think there’s anything there for Dish that they wouldn’t get “freeish” with the contraction or even demise of DTV.
 

MitchDeerfield

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The stock holders get cash..the new entity gets the debt...prices will keep increasing..meaning dtv will still keep losing customers...no different than when they sold landlines to frontier
No, the corporation got cash. The stockholders got nothing. You are missing the point.
 

MitchDeerfield

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The people with preferred stock also got nothing from this deal. The beneficiaries were the corporate executives with their huge salaries and stock options.
 

Juan

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The people with preferred stock also got nothing from this deal. The beneficiaries were the corporate executives with their huge salaries and stock options.
Wrong. Wrong wrong...there are no people with proffered stock...just banks and other investment institutions...they won big time...no longer responsible for debt
 

Arion

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AT&T bought a dying pig in a poke and now they are stuck with it. Kind of like buying Blockbuster as the VCR medium was dying and people started exploring streaming/downloading options.

Sucks to be them.
 

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