If bought would the new company run the billing, customer service and tech support better than AT&T?
AT&T exploring Deal to sell off DIRECTV.
- Thread starter Scott Greczkowski
- Start date
- Latest activity Latest activity:
- Replies 669
- Views 55K
I personally would not expect that to be the case. Satellite TV is a declining business, and I expect that the customer service will follow suit no matter who owns it.
Wouldn't the new owners be Apollo Global Management, or Churchill Capital Corporation IV? Unless AT&T turned them down?
Actually AT&T will be the minority owner and will no longer manage DirecTV. That is the whole point.
Thats not true at all...only selling 15%... but wait for the final details
Isn't the whole point of selling DTV is getting it off of their books to pay down their debt? Also like others said in this thread still keep some of the profits?
Well, yes and no. They do want cash to pay debt, but they also want to look like they are doing something about a declining business line. Gotta make the Street happy.
Why would they waste their time selling 15 percent of DirecTV? That's pocket change for them.
Every article I've seen relative to the DTV auction only mentions AT&T possibly retaining a minority interest. The two primary results AT&T appears to be interested in by offloading DTV are debt reduction and spectrum purchases.
Wait for the facts on what they are selling...perhaps its alot more than directv...i recommend reading the nytimes or wall street journal rather than blog articles like swanni..they just regurgitate rumours found on the web
The sale being rumored gets ALL Directv's debt off their books, and onto the books of the new entity that will be jointly owned by AT&T and the buyer. They will also get paid a percentage of the $15 billion sales price (i.e. if they sell a 40% share they'll get $6 billion in cash)
Corporations have little incentive to pay down debt when interest rates are as low as they are. Removing it from their books by "selling" it is desirable, paying it off not so much. The money they get from the sale is unlikely to be used for debt retirement when they are probably only paying 2% on a 20 or 30 year note. They'd more likely buy back stock, or use it to fund dividends.
Normally very true. However, AT&T does not have a normal amount of debt.
If ATT sells a stake in DirecTV to someone that knows what they are doing and can turn the company around, it would be a win for ATT, the partner and customers. Might allow ATT to be a little more hands off, avoiding making more bad decisions.
Similar threads
- Locked
