Analyzing the Acquisition - Report on AT&T, Inc.

Aug 11, 2015, 09:05 ET from www.aciassociation.com

NEW YORK, August 11, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on AT&T, Inc. (NYSE: T). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=T

Highlights from our T Report include:

  • Largest pay TV provider in the US - On July 24, 2015, AT&T Inc. announced that it has completed its acquisition of DIRECTV. DIRECTV shareholders received 1.892 shares of AT&T common stock and $28.50 in cash per DIRECTV share owned. In its acquisition announcement dated May 18, 2014, AT&T had reported that DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. Based on this, purchase price implied a total equity value of $48.5 billion with the total transactional value coming in at $67.1 billion on the inclusion of DIRECTV's debt.
  • Value additions - Forbes recently reported in a news post dated July 27, 2015 that the merged Company would be in a position to offer, what it termed as a "quadruple-play" bundle which would include four bundled services namely, mobile, fixed-line phone service, high-speed Internet and TV. It would provide AT&T with a competitive advantage as its competitors, Comcast (offering fixed-line, Internet and TV) and Verizon (offering wireless, fixed-line and broadband) offer three bundled services.
  • Federal Communications Commission's Conditions - AT&T has agreed to FCC's conditions to get the deal done. The Company will within 4 years, offer its all-fiber Internet access service to at least 12.5 million customer locations, such as residences, home offices and very small businesses. It would also offer 1Gbps service to any eligible school or library requesting E-rate services, pursuant to applicable rules, within the company's all-fiber footprint.
  • Management Speak - Randall Stephenson, the Chairman and CEO of AT&T said that combining DIRECTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service. He added that the Company would now be able to meet consumers' future entertainment preferences, be it traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen.

To find out how this influences our rating on AT&T, Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=T

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