May 19 - AT&T's proposed buyout of DirecTV will give it cash, international reach and coveted programming but also added regulatory scrutiny. Jeanne Yurman reports.
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AT&T is determined not to be left out of the shrinking media industry. Regulators be -- its pursuit of T-Mobile. So it trumpeted Monday that it's going after the country's top satellite TV provider DirecTV instead. For just under 49 billion dollars many analysts questioned the pursuit of a stagnant industry likes satellite TV. Yes bungling its video with AT&T'S broadband and voice businesses. Mix for a stronger more competitive service but given the awesome expanse of expanding broadband networks. AT&T. Wants something else says Jim -- of Forrester Research. DirecTV spins off over 2.5 billion dollars in free cash flow each year. And AT&T DirecTV merger could also add. Fifteen million broadband customers mostly in rural areas adding to AT&T'S current eleven million. And -- tuna -- of S&P capital IQ points out the deal grows AT&T'S footprint internationally. Buying DirecTV also means a potential one billion dollars generated each year. Through contract to broadcast NFL Sunday ticket. Which also provides a key marketing advantage over other cable operators yet I'm not show up but these two companies is very uncertain. If the NFL contract is not renewed. AT&T could back out of the deal and AT&T will have to have some pretty long lay eggs to clear the regulatory hurdles. If the government gives its go ahead to Comcast -- out of Time Warner Cable. And the DirecTV -- the media industry would boil down to roughly five major players. A prospect that experts say will cause added scrutiny now for both deals.
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