DirecTV (DTV) Yearning For AT&T Inc. (T) Merger for an Uplift On Subscribership Front

DirecTV (NASDAQ:DTV) is waiting in anticipation; the closure of its impending merger with AT&T Inc. (NYSE:T) as regulators continue to review the transaction.  TheStreet’s Jonathan Marino reports that the stock could gain even more with the closure of the deal having already surged by 25% for the year. Not only DirecTV is waiting but Berkshire Hathway’s Warren Buffet is also hoping that there would be a deal.

DIRECTV (NASDAQ:DTV)

AT&T Inc. (NYSE:T) and DirecTV have already agreed on a $48.5 billion merger agreement awaiting regulatory approval. A merger in this case will result in a combined entity serving up to 26 million video subscribers in the U.S.. DirecTV (NASDAQ:DTV) has been struggling on the subscription front in the recent past awaiting to receive a major uplift with the impending merger.

“The company is losing subscribers in the U.S and Latin America, but that is okay they are making it up on bulkier prices plus DirecTV) has extended its package with the national foot league. That means that more consumers still won’t cut their cord,” said Mr. Marino.

DirecTV has already become the first company in the U.S to offer 4K Ultra HD programming for consumers with Samsung TV. Consumers with Samsung TV will be able to access Ultra HD content by the use of DirecTV Genie HD. The latest technology promises some of the finest picture quality with life-like clarity and horizontal pixels in the order of 4, 000 pixels.

AT&T continues to receive resentment over the impending merger with DirecTV on the fact that the combined entity will in away operate as a monopoly, affecting the level of competition in the space. A number of small players have also shown resentment over the proposed merger pitying Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc. (NYSE:TWC).

The FCC was forced to impose a pause on the review process after AT&T Inc. (NYSE:T) and Comcast opposed request to table their carriage contracts. The two companies have consistently argued that their competitive advantage in terms of negotiating for better terms would be affected should the information be made public.


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