#CES2010 RUMOR: AT&T and Microsoft Buying DIRECTV – Announcement at CES
According to an industry source AT&T along with support from Microsoft will announce at CES that they are buying DIRECTV. I have not heard of an amount yet. I am actively trying to confirm.
Based upon a reliable industry source, AT&T will purchase DIRECTV with support from Microsoft. Microsoft would be contributing money to secure the rights for their technology to power the backend of AT&T DIRECTV.
This past year AT&T has been working with DIRECTV in a partnership since dumping Dish in 2008. That deal between AT&T AND DIRECTV started in 2009 as originally a hedged for it’s own its’ own pay television service, U-Verse. DIRECTV has over 19 million subscribers in the US.
U-Verse has been gaining traction and is part of all the AT&T service pitches when you go to their stores. U-Verse has been very aggressive again Comcast. I recently got the hard sell on U-Verse when I went in to buy my wife a iPhone just last month.
AT&T has been having a hard time getting uptake on the U-Verse so going with DirectTV makes sense to augment their wireline business with a satellite service.
For DIRECTV they have done great with their HD offering and premium channels like NFL Sunday Ticket. I’m not sure if AT&T buyout is good for DirectTV users.
However, a new AT&T and DIRECTV combination pushed AT&T into even more homes. Not sure how this transaction will impact DirectTV’s reseller relationship with Verizon and other telcos.
I contacted AT&T for this post. An AT&T spokesperson stated that “AT&T does not comment on rumors or speculation.”
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