Call Summary Of AT&T's Acquisiton Of DirecTV

AT&T T on Monday hosted a conference call alongside DIRECTV DTV highlighting the recent acquisition of DIRECTV by AT&T.

CEOs from both companies spoke optimistically about the financing, opportunities and impact of the deal.

Financing

• 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.

Impact

• 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.

Opportunities

• 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.