DirecTV shareholders have approved the $48.5 billion AT&T takeover, a deal which has to be approved by the regulatory board. If successful the merger will give AT&T a national presence in the television sector.
The deal which was announced in May will give AT&T access to nationwide television service which it can combine with its wireless services. With this merger AT&T hopes to better compete with both wireless and cable competitors by combining the two services together. AT&T will now offer the bundles in its nationwide wireless stores.
AT&T at present offers its television and broadband services via its U-Verse platform. However its availability is sporadic and available in areas where it offers its telephone services also. Therefore it wants to bring DirecTV into its fold.
An AT&T spokesman said, “We appreciate DirecTV shareholders’ approval and look forward to continuing our work with the various regulatory agencies reviewing the deal to gain their approval as well.”
However to reach fruition the deal will have to be approved by Federal Communications Commission and the Justice Department. The deal will also have to be approved by certain international regulatory bodies and expiration of waiting periods required by the Hart Scott Rodino Act.
DirecTV had announced on Thursday that its shareholders have voted in favor of its proposed $48.5 billion acquisition by telecom giant AT&T. The final voting results read-99% votes cast in favor of the merger agreement. The total votes represented 77% of all the outstanding shares. The deal is expected to be completed in the first half of 2015.
AT&T had signed a cash and stock deal valued at about $48.5 billion in mid May to acquire DirecTV for $95.0 per share. AT&T has offered DirecTV shareholders $28.50 in cash and $66.50 in AT&T stock for every DirecTV share held by them. The final value of the deal is about $67.1 billion and also includes DirecTV’s net debt. The deal was approved unanimously by the board of the two companies and was expected to be closed in about 12 months.