May 18 AT&T and DirecTV have agreed that there will not be a reverse break-up fee, or penalty that AT&T would have to pay the satellite operator if regulators shut down the proposed combination, according to a person familiar with the matter.
DirecTV has agreed to pay a $1.4 billion breakup fee to AT&T if the satellite operator ditches the deal to pursue a potential topping bid, the person added, asking not to be named because the matter is not public.
In 2011, when regulators shot down AT&T's purchase of T-Mobile, the larger telecommunications company had to pay $3 billion in cash and another $3 billion in assets to its smaller rival.
Representatives for AT&T and DirecTV could not be immediately reached for comment. (Reporting by Soyoung Kim; Editing by Bernard Orr)