AT&T exploring Deal to sell off DIRECTV.
- Thread starter Scott Greczkowski
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If it's such a cash cow why would AT&T want to dump it? Why would investors want it dumped? If a buyer could make their money back in 4 years why wouldn't AT&T hang onto it for those same 4 years and be ahead of the game? Sorry, that makes no sense.
That was phase 2...when wall street broke it up with the divesture
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About 7 or so years ago DirecTV had huge buildings full of people working on receiver designs, interfaces, firmware, etc. I think they have all been laid off and if there are any receiver or firmware people left its very few.
How could another company operate DTV if they aren't going to make any new boxes? How much longer can they keep refurbishing them?
I doubt Directv would have done that even if AT&T didn't own them. It is simpler for installers and CSRs if everything is a Genie/client.
As for larger installs, I wonder if Directv supports use of COM2000/3000 chassis in the residential market? That may not make much sense for someone who has say 10 TVs (they'd probably just get them a Genie 1, clients, and a bunch of HR24/H24) but for the ridiculous houses that have like 30 TVs the cost of something like that is not going to concern the owner.
That's probably the direction they intend for commercial installs who want to support a lot of 4K TVs, and thus why standalone 4K receivers never appeared.
AT&T May Sell Minority Stake In DIRECTV & U-verse? - The TV Answer Man!
AT&T is considering selling a minority stake in DIRECTV, AT&T TV Now and U-verse, possibly to Apollo Global Management, the equity firm, according to a CNBC report. The telco has been shopping for a buyer for DIRECTV, according to multiple news reports. The satcaster has lost several million...
tvanswerman.com
Directv makes $4 billion a year in profit. If you can buy that for $15 billion - or a share of that profit for the equivalent share of $15 billion - you'll make your money back in only four years, and it is profit after that.
Even if you assume subscriber losses reduce that profit (they have barely dented it so far - it is not the high value customers leaving) and it stretches the payback to 5 or 6 years it is still a pretty good deal.
No matter what happens with residential, Directv is going to remain the go to solution for restaurants/bars for a long time. Even ignoring that currently no one offers streaming TV packages that permit public viewing needing a separate stream for each TV raises your bandwidth requirements quite a bit. And you'll have a lot more hiccups in those live streams than you have rain fade interruptions.
You do know that att laid off the majority of directv technical support people to make that profit...along with closing many call centers...for directv to become a viable stand alone company they are going to have to hire a ton of people
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Sounds like the 15 billion would be for minority ownership
CNBC: AT&T considers selling significant minority stake in DirecTV, AT&T Now and U-Verse pay-TV operations, sources say.
AT&T considers selling significant minority stake in DirecTV, AT&T Now and U-Verse pay-TV operations, sources say
AT&T is discussing selling 30%-50% of its DirecTV, AT&T Now and U-Verse pay-TV business to private equity firms including Apollo Management.
www.cnbc.com
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They should sell it back to Rupert Murdoch and let him finish the destruction he began in 2004.
I don't remember Rupert or our CEO Chase Carey during that time steering the company in a bad direction, I think they did an ok job. It was a little odd seeing Ruperts wife Wendi come through the place condemning some managers offices due to the lack of Feng Shui. They did merge some annoying News Corp stuff in with DirecTV but that all got ironed out at some point.
The big complaint I had was the dropping of Tivo in favor of the the horrible (at the time) H and HR series of hardware. Also, that is when prices really started to trend upward in a really big way.
I don’t think there is ANY payback period with such a deal, with ATT staying in the picture in a major way.
I give it three years, TOPS, for sports to offer deals outside of ATT/DTV. COVID, on top of sheer economics. Sports bars don’t NEED ATT. Only contracts and perhaps a few misguided laws or regulations stand in the way.
I give it three years, TOPS, for sports to offer deals outside of ATT/DTV. COVID, on top of sheer economics. Sports bars don’t NEED ATT. Only contracts and perhaps a few misguided laws or regulations stand in the way.
