AT & T
examines the separation from the DirecTV satellite unit, as the persons familiar with the matter said, a move that requires a sharp course correction in the director general's strategy Randall Stephenson Would Mean
The telecommunications giant has considered several options, including the spin-off of DirecTV into a separate public company and the combination of the assets of DirecTV with Dish Network Corp. ., the rival for satellite television, people said.
AT & T may eventually choose to maintain DirecTV. Despite the difficulties of satellite service, when consumers break their TV connections, it still contributes a significant volume of cash flow and customer accounts to its parent company.
AT & T acquired DirecTV in 201
There could be regulatory hurdles for a deal with Dish, which has about 12 million subscribers. When Dish's predecessor, EchoStar Communications Corp., and DirecTV's former owner, Hughes Electronics Corp., attempted a merger in 2001, the regulators blocked the merger for antitrust reasons. More recently, Dish Chairman Charlie Ergen interviewed DirecTV in 2014 but lost to AT & T.
Commenting on the idea of merging the two satellite providers, John Stephens, CFO at AT & T, said: "From a regulatory perspective, this was unsuccessful, and I do not know that anything changes in this regulatory perspective. " added at an investor conference last week, "I understand the industrial logic, but frankly it was tried and rejected."
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