The merger talks between DIRECTV (NASDAQ:DTV) and AT&T Inc. (NYSE:T) have been on the limelight for a while but now there is the possibility that the two firms are about to successfully finish up the process.
During one of the recent briefings, the two firms announced that they had decided to extend the negotiation period. Analysts believe that an extension of this period is a good indicator that the two companies are confident that the merger will indeed be approved within a short period of time.
There has been quite a number of bumps on the road for the merger since they entered into the review process with the Federal Communications Commission. It is only a matter of time before the merger receives approval from the FCC, mainly because the negotiations have not hit any wrong nerves so far. It is expected that the resultant conglomerate will be a market leader in various content including TV, high speed internet and mobile communications.
The merger close period has been extended to times now. If they were to give on the proceedings, they would have already done it by now to avoid wasting too much time. However, the two have been following up closely, an indicator that they are completely confident that the outcome will be positive.
the AT&T-DTV merger was taken up for review by to FCC in May last year, right at the time the commission was handling the merger prepositions between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC). However, Comcast and TWC did not manage to reach viable terms. They faced opposition from various groups and eventually dropped the merger plans.
DTV and AT&T Inc. (NYSE:T) have been lucky enough so far despite facing similar worries. At one point, the FCC had put the process on hold to wait for a court ruling on how the firms intend to handle PayTV contracts with third parties. They also received a lot of criticism over net neutrality regulations but luckily they managed to go around it.