Call Summary Of AT&T's Acquisition Of DirecTV
CEOs from both companies spoke optimistically about the financing, opportunities and impact of the deal.
- The total enterprise vale of the acquisition is $67.0 billion.
- $47.0 billion will come from AT&T stock with the remainder of the deal being paid in cash.
- $0.05/share impact is expect for 2014 EPS.
- Expect EPS to be created within 12 months of the deal along with free cash flow.
- The deal will redefine video for high-speed mobile devices.
- Bundling DIRECTV video streaming through mobile platforms is expected to be seen immediately after the deal.
- Mobile and broadband network architectures will change for delivering video.
- Customers are expected to see competitive pricing, superior customer experience and video streaming on mobile devices.
- Very confident in passing the acquisition by regulators. Highlighted that this will bring competition to cable companies.
- Highlighted and emphasized the cost savings and growth opportunities that result from both companies that wouldn't be available any other way.
- Latin American pay TV market opportunities were discussed and excited AT&T CEO Randall Stephenson.
- The goal to deliver cost-effective video to all screens is the ultimate goal.
- Will invest $9.0 billion in spectrum auctions, noted that this deal will not hinder on participating in this auction.
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