Albany, New York (09/26/2014) – While AT&T Inc. (NYSE:T) competitors and a few more in the industry are urging FCC to block its deal with the DIRECTV (NASDAQ:DTV), the latter’s shareholders have given a nod for the acquisition. Yesterday, the shareholders of DIRECTV gave an overwhelming 99% approval response to company’s acquisition in a $45 billion deal.
The Deal under FCC Review
Even though, the deal has been given 99% of votes cast approval by DIRECTV (NASDAQ:DTV) shareholders, but it is still under the lens of FCC for review. In case FCC gives its nod to the deal, AT&T Inc. (NYSE:T) and DIRECTV expect to seal it by June 2015.
The 99% votes cast are a representative of 77% outstanding shares.
The AT&T Inc. (NYSE:T) acquisition deal sits at the crux of deal completion with the National Football League. AT&T, with a deal with NFL, will get the rights for popular package- Sunday Ticket. This package allows the subscribers to get live Sunday games on the devices of their choice and multimedia platforms, such as games consoles and iPads.
The Hurdle in Deal
While both the companies are claiming the deal to be in the public interest, most of the others are seeing it as the AT&T Inc. (NYSE:T) way to cut down competitors in the highly competition-driven sector of the U.S. However, the deal is another move in this industry consolidation tide that is taking place in telecommunication industry.
Why Competitors are opposing the deal?
As this competition moves further, the customers will gradually take a transition towards cord-cutting. This means that almost all companies will be determined to produce growth. However, industry experts believe that AT&T Inc. (NYSE:T) has “hidden ambitions” in the deal. While it has approximately 11 million Internet customers, AT&T has merely 5.7 million TV customers for U-Verse. It is here that the deal hits the competitors.
With DIRECTV (NASDAQ:DTV), AT&T Inc. (NYSE:T) will have a chance to improvise its TV performance. With the former, AT&T will be able to unfold its services in existing portfolio of DIRECTV, which means, higher margin and wider market.