AT&T to Acquire DirecTV for $50 Billion?

The wireless carrier is reportedly in talks to purchase the nation's biggest satellite provider.
5:06 | 05/13/14

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Transcript for AT&T to Acquire DirecTV for $50 Billion?
Okay. It's Tuesday may thirteenth the New York markets are open and today's big number fifty billion dollars. That's how much AT&T is reported about -- to acquire DirecTV the nation's biggest satellite TV provider. Hello everyone I'm Michelle Franzen in New York candidate tell us all about this major merger -- -- toll from Yahoo! finance. So -- it's been talked about for some time but suddenly this sort of merger deal could be gaining some momentum how soon could this deal done. While the reports -- That in fact is happening but all the reports are pretty much an agreement that it might be something like a fifty billion dollar five deal. Something that would allow AT&T to kind of fill out its offering. You know of subscription services wireless broadband and now this would be a bigger video platform to bundle into that monthly package and then offered people. And we're talking about AT&T -- somewhere between 95 and a hundred dollars a share for DirecTV if this deal goes through and then gaining a significant foothold. In both the US and Latin American television markets does this deal make financial sense for AT&T and for customers. While. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But it does make sense from a strategic point of view everyone seems to think that you have to be able to package all of these these communications and video services -- -- AT&T has a big hole when it comes -- subscription. Pay TV. And this would fill that and then -- -- -- Latin American exposure AT&T -- has very much a domestic business and they certainly wanna have that outlet to grow international I was going to ask you about the strategy give me an idea how DirecTV would. Benefit AT&T in the case. Chart now the idea would be -- be able to replicate something like what. You know what say what Comcast can offer you where they say in home video. Not just -- pay TV. -- broadband and today they actually also partner with some wireless carriers to do it on third party basis so eighteenth he can basically say hear one monthly bill we're giving you. Phone Internet TV. That's the main idea there and it's not clear that everybody in the world wants -- -- -- the interesting thing about it is all these deals seem to be happening. At a time when the overall market for pay TV is peak and is this declining slowly as people go to Netflix and always -- Ala carte services how does this potential merger deal fit in with some other merger deals especially the Comcast -- Time Warner and what regulatory hurdles. -- T and T have to overcome. So if it's his all the players in the market are saying we -- -- growth business and pay TV we have to kind of band together and get efficiencies and also get what they want is negotiating power. With the actual TV networks themselves the cable networks themselves that's that the big pitch with the Time Warner Comcast. Proposed mergers -- well will be a big. Buyer on TV network programming therefore we can drive a harder bargain to make it better for consumers it's unclear if that if that promise would ever actually pay off. I think it's probably neutral at best for consumers and all these cases as opposed to something that's going to be tremendously beneficial from the get ago. You might have some pricing efficiencies if in fact eighteenth he can be your sole provider of all those for various services in one place and was sprint likely to obtain T-Mobile whereas Verizon as all these huge industry redefining deals. Take shape. While Verizon Wireless -- course it you know it still is the biggest and often considered the best wireless provider. It's 50% or almost 50% owned by Vodafone in the UK and and in fact they want Vodafone wants the kind of cell that part of the business to their katic consumed with this would perhaps finding a buyer for that piece of Verizon Wireless are buying it themselves. They also do have the bios broadband and video service in some of there service area so that's something they at least have exposure to that sort of you know -- monthly bundle. But you know theoretically down the road at this these deals redefine what being is and Verizon might have to do something when adjusting element of DirecTV. Proposed deal or at least conjecture deal at this point. Is that it's often to -- on paper that DirecTV and dish the -- satellite providers make perfect sense to merge. But regulators might not look so kindly on that so at this point people are finding ways to appease regulators say -- it's going to be better for consumers and find the corporate efficiencies -- and time. Mike -- toll from Yahoo! finance thanks for joining our thinking -- You of course can keep up with the latest headlines right here on Even watching the big number I'm Michelle Franzen -- New York.

This transcript has been automatically generated and may not be 100% accurate.

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