AT&T Inc. (NYSE:T) has been known to be in talks of acquiring DirecTV. Now AT&T has moved a step closer to completing this acquisition. The company has recently sold its bonds for a hefty price of $17.5 billion, in an attempt to fund the acquisition. The deal has been one that would have created strong competition for Comcast’s acquisition of Time Warner. Comcast and AT&T have already been competitors in the broadband industry and with the two deals they could have been rivals in the cable industry as well. Unfortunately, the deal between Comcast and Time Warner has been declined by Federal regulatory authorities.
The Comcast deal would have created a titan internet service provider, a leading content provider company and one of the top selling TV Company, all in one. The AT&T deal seems to posing no such threats and hence should be given the green light fairly easily. Analysts have already hinted that the next few weeks could be packed with excitement and good news from the company.
The FCC is thought to be awaiting court decisions and would resume the shot clock after it has reviewed the final documents. Additionally, the regulatory authorities have yet to arrange talks with the company to firm up any concessions in the deal. The decision is planned to be taken before the commissioners receive a written order to vote.
AT&T announced that following this deal, the company would aim to save $2.5 billion in annual costs. This is the second forecast made by the company and raises the savings by $0.9 billion. Following the recent hype, the two companies saw their stock soar gaining significantly in the stock market. Additionally, AT&T has also been experiencing record debt sales this year and has been seen by the buyers as to have great value within the next five years.
AT&T Inc. (NYSE:T) closed at $34.09, after gaining 0.24% on April 27. The company has 5.19 billion shares being traded in the market, with a 52-week range of $32.07-$37.48.