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AT&T to buy DirecTV for $61 billion: Official

Published on May 19, 2014 5:52 AM

NEW YORK (AFP) - US telecommunications giant AT&T clinched a deal Sunday to acquire broadcast satellite service provider DirecTV for nearly US$50 billion.

Shareholders are set to receive US$95 per share under the terms of the merger, including US$28.50 per share in cash and US$66.50 per share in AT&T stock, the companies announced.

A statement said the transaction, approved unanimously by both boards, is based on a total equity value of US$48.5 billion (S$60.6 billion) and a total transaction value of US$67.1 billion, including DirecTV’s net debt.

A merger between the two companies would create a potent rival to cable TV giant Comcast, which hopes to expand its coverage with the pending takeover of Time Warner Cable.

A DirecTV satellite dish is seen on a home in the mountains outside Golden, Colorado on May 18, 2014. -- PHOTO: REUTERS
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