"Proposal of $15 Billion Condition Including Debt"
[Asia Economy Reporter Jeong Hyunjin] It has been reported that the major U.S. telecommunications company AT&T has received a $15 billion (approximately 16.3 trillion KRW) acquisition offer for its pay-TV provider DirecTV.
On the 9th (local time), The Wall Street Journal (WSJ) reported, citing sources, that AT&T has been receiving multiple offers to sell DirecTV, and that private equity firm Apollo Global Management appears to have proposed $15 billion including debt as the terms. In addition, Churchill Capital Corporation, a special purpose acquisition company (SPAC) founded by former Citibank CEO Michael Klein, and U.S. private equity firm TPG have also entered the bidding for DirecTV.
WSJ forecasted that if the final bidding takes place, the deal could be completed by early next year. WSJ stated, "(Through this deal) AT&T can resolve DirecTV’s deteriorating financial condition by maintaining its stake in the business while relinquishing control."
AT&T acquired DirecTV in 2015 for $49 billion. At that time, the pay-TV market attracted attention as it was expected to be reorganized around large companies that combined telecommunications and pay-TV businesses. However, as streaming services like Netflix rapidly grew, the pay-TV market shrank. DirecTV’s subscriber base also significantly declined, leading to financial deterioration.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
