Earlier this year Comcast acquired Time warner cable, now it looks like AT&T is looking to get in on the action. It is rumored that the company is interested in offering DirecTV $50 billion for the acquisition. Nothing has been made public yet and so nothing can be confirmed as the selling price may be subject to change. Mike White, CEO of DirecTV, may make the transition over to AT&T as a stipulation in the sell as well. Sales from both satellite companies have been less than stellar. ReconAnalytics analyst Roger Entner stated “They both see the Grim Reaper at the horizon. DirecTV hasn’t gone out and bought spectrum. Dish has, so DirecTV needs to find a partner, and AT&T may be that partner.
AT&T is looking to make this deal so that it can secure its position as the lead satellite provider, just as Comcast is looking to do with cable. What this all really means is that consumers have less control. Though these mergers are not creating monopolies, they are definitely taking the power away from the customers. With less competition you will have to choose the lesser of two evils, and whether you’d rather have cable or satellite. Streaming and web based services are already incredibly popular and cheaper alternative. When satellite and cable company prices eventually get too high for you, consider services such as Netflix and Hulu for your viewing needs.
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