Skip to main content

AT&T and DirecTV’s $48.5B merger approved, but with strict conditions for AT&T

Screen Shot 2015-07-24 at 5.31.59 PM

AT&T and DirecTV’s $48.5 billion merger has been approved today following more than a year of regulatory review. The merger will see AT&T become the biggest pay-TV company, passing up cable company Comcast. AT&T says it will serve more than 26 million U.S. customers and 19 million users in Latin America.

As part of the regulatory approval, the FCC has applied several conditions to the merger, all of which will be imposed for four years and enforced by internal and external compliance officers. Some of the conditions include protections for rival companies and a requirement that AT&T expand high-speed Internet to schools and low-income areas.

AT&T has promised to buildout high-speed Internet to more than 12.5 million customers and to sell Internet access to Americans without building it with TV services. AT&T will also have to share all traffic exchange agreements it makes with content and web transit companies with the FCC.

The Justice Department remarked that it found no significant reasons for the merger not to be completed and coupled with the conditions set forth by the FCC, the benefits of the merger will be realized.

AT&T is, of course, pleased by the news and the opportunities it opens up:

“We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen,” AT&T Chairman and CEO Randall Stephenson said.

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Google — experts who break news about Google and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Google on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

Author

Avatar for Chance Miller Chance Miller

Email: Chance@9to5mac.com

Chance currently writes for both 9to5Google and 9to5Mac, in addition to 9to5Toys.