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Breakingviews: Not Directly obvious

Monday, May 19, 2014 - 03:01

May 19 - AT&T has agreed to buy DirecTV for $67 bln. Breakingviews columnists discuss what the U.S. cellphone giant wants from the deal and how it will find $1.6 bln of annual cost savings.

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And AT&T is trying a different tack. His bank tried to buy team among US rival cellphone carrier. That don't Skype but now it would suspend 67 billion those -- on DirecTV which satellite TV. So what's the well it's a complete with a xxx address basically they realized they could the regulators told them they can't expand really in US mobile but. So now we're gonna try to move into another direction and as the you know the video. Landscape changes pretty significantly. Well without kind of you know programming on phones mobile phones right over the top on the Internet moving away from the Linear television product. They're buying DirecTV. Which you know they're trying to do something different there they struggle to find deals with a certain scale real and there. Almost a day or two billion dollar company already Zito can't that's the thing US essentially duopoly in in phones they've got number three number four but the thing is the regulators say well. If you were not in Cuba was exactly right so they've gone for the steal and and it's not quite clear you know what the rationale -- I mean -- -- they say there are some savings from combining that television well right. Quite a lot it was a one point says. The surprising part of -- look at this deal last week you know it's hard to find a lot of savings of adults say it may be as much as a billion but somewhere saying considerably less. The only committed no overlap right musical two completely different businesses like where they're finding receivers -- -- saying her savings is in. Buying TV programming cheaper. They're saying there's one point six billion dollars -- it's now obvious to part of that is that even when you factor that in. It doesn't cover the cost of the premium -- -- a little bit short. Ten billion dollars worth synergies verses eleven. Billion dollars in their own it also because they have it's tough time regulars last time it looks like they're they're trying to get ahead -- this time I think yeah. All these things where he needs to rule out broadband inquiry in rural areas where you know. President Obama really expensive business yet it's really important few president -- want real -- these areas we're gonna help you do that you know if you let this -- go but it was a what's left for the settlers and how much have everything -- go to -- -- -- all. Proceeds from back but they're saying he's all proceeds from that it to papers were brought that there are also having to sell off. I'm a pretty good stake in American mobile which is that -- Carlos Slim has big operations in Mexico. That's a five billion dollar state that's to appease regulators in Latin America and that's a little -- -- earnings it's gonna disappears and of course they're picking up a huge. But America business from DirecTV as well. So there's that trade off. And there are also to appease regulators again they're pledging nine billion dollars at least to spend on a spectrum auction that's coming up next years it really. Focused on regulators and customers here and not so much of shareholders at its stock tells you that the sport but it does leave it then we'll keep -- agency's latest -- for a little breaking news -- tomorrow.

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Breakingviews: Not Directly obvious

Monday, May 19, 2014 - 03:01