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AT&T disappointed with offers for struggling DirecTV

They can't do a merger now, it would never be approved. Maybe in five years when 5G is built out or Starlink.
 
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.

AT&T to Spin Off Long-Suffering DirecTV in Deal With TPG

(Bloomberg) -- AT&T Inc. will offload its DirecTV operations in a deal with private equity firm TPG that values the business at about $16 billion, a fraction of what the telecom giant paid for the satellite-TV company in 2015.As part of the agreement, a joint venture with TPG will run DirecTV...
finance.yahoo.com
 
Its a big pot of cash
 
Juan said:
Its a big pot of cash
Click to expand...

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
 
Reactions: ncted
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.
 
Juan said:
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
Click to expand...
No, the corporation got cash. The stockholders got nothing. You are missing the point.
 
MitchDeerfield said:
No, the corporation got cash. The stockholders got nothing. You are missing the point.
Click to expand...
Umm not the common stock holders...the ones that really control the corporation..the ones with preferred stock..the banks and institutions that are majority owners
 
The people with preferred stock also got nothing from this deal. The beneficiaries were the corporate executives with their huge salaries and stock options.
 
MitchDeerfield said:
The people with preferred stock also got nothing from this deal. The beneficiaries were the corporate executives with their huge salaries and stock options.
Click to expand...
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
 
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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