DALLAS, TEXAS – July 24, 2015 — AT&T Inc. (NYSE:T) has completed its acquisition of DIRECTV. The newly combined company – the largest pay TV provider in the United States and the world – will offer millions of people more choices for video entertainment on any screen from almost anywhere, any time.
“Combining DIRECTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service,” said Randall Stephenson, AT&T chairman and CEO. “We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen.
“This transaction allows us to significantly expand our high-speed Internet service to reach millions more households, which is a perfect complement to our coast-to-coast TV and mobile coverage,” Stephenson said. “We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition.”
AT&T now is the largest pay TV provider in the U.S. and the world, providing service to more than 26 million customers in the United States and more than 191 million customers in Latin America, including Mexico and the Caribbean. Additionally, AT&T has more than 132 million wireless subscribers and connections in the U.S. and Mexico; offers 4G LTE mobile coverage to nearly 310 million people in the U.S.; covers 57 million U.S. customer locations with high-speed Internet; and has nearly 16 million subscribers to its high-speed Internet service.
Current customers of AT&T and DIRECTV do not need to do anything as a result of the merger. They’ll continue to receive their same services, channel lineups, and customer care. Customer account information, online access and billing arrangements remain the same. The integration of AT&T and DIRECTV will occur over the coming months. In the coming weeks, AT&T will launch new integrated TV, mobile and high-speed Internet offers that give customers greater value and convenience.
With the completion of its DIRECTV acquisition, AT&T will continue to deploy its all-fiber GigaPower Internet access service – the company’s highest-speed Internet service, which allows you to download a TV show in as little as three seconds. When the expansion is complete, AT&T’s all-fiber broadband footprint will reach more than 14 million customer locations.
AT&T announced that John Stankey will be CEO of AT&T Entertainment & Internet Services, responsible for leading its combined DIRECTV and AT&T Home Solutions operations. Stankey will report to Stephenson. DIRECTV President, Chairman and CEO Mike White announced his plans to retire.
“Mike is one of the world’s top CEOs and a great leader who built DIRECTV into a premier TV and video entertainment company spanning the U.S. and Latin America,” Stephenson said. “He has been a terrific partner and friend, and his legacy will be an important part of our combined company.”
As a result of this transaction, AT&T leads the industry in offering consumers premier content, particularly live sports programming, such as the exclusive rights to NFL SUNDAY TICKET, which gives customers every out-of-market NFL game, every Sunday afternoon, on any screen – TV, mobile devices or PCs. Additionally, the company owns ROOT SPORTS, one of the nation’s premier regional sports networks, and has stakes in The Tennis Channel, MLB Network, NHL Network, and GSN (Game Show Network).
AT&T is also developing unique video offerings for consumers through, among other initiatives, its Otter Media joint venture with The Chernin Group. The joint venture was established to invest in, acquire and launch over-the-top (OTT) video services. This includes its purchase of a majority stake in Fullscreen, a global online media company that works with more than 50,000 content creators who engage 450 million subscribers and generate 4 billion monthly views.
Under the terms of the merger, DIRECTV shareholders received 1.892 shares of AT&T common stock, in addition to $28.50 in cash, per share of DIRECTV. AT&T will provide complete updated 2015 financial guidance at a conference the company will host for financial analysts in the coming weeks. The conference will be webcast to the public.
The DIRECTV acquisition significantly diversifies AT&T’s revenue mix, products, geographies and customer bases. As a result of this acquisition, as well as AT&T’s acquisition of Iusacell and Nextel Mexico, AT&T expects that, by the end of 2015, its largest revenue streams will be, in descending order: Business Solutions (both wireless and wireline); Entertainment & Internet; Consumer Mobility; and International Mobility and Video.
As part of the Federal Communications Commission’s approval of the transaction, AT&T has agreed to the following conditions for the next four years:
AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, mobile, high speed Internet and voice services. We’re the world’s largest provider of pay TV. We have TV customers in the U.S. and 11 Latin American countries. In the U.S., our wireless network offers the nation’s strongest LTE signal and the most reliable 4G LTE network. We offer the best global wireless coverage*. And we help businesses worldwide serve their customers better with our mobility and secure cloud solutions.
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Reliability and signal strength claims based on nationwide carriers’ LTE. Signal strength claim based ONLY on avg. LTE signal strength. LTE not available everywhere.
*Global coverage claim based on offering discounted voice and data roaming; LTE roaming; voice roaming; and world-capable smartphone and tablets in more countries than any other U.S. based carrier. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.