DirecTV: Collecting The Ticket For $95
Oct. 3, 2014 2:39 PM ET | About: DIRECTV (DTV), Includes: T
Disclosure: The author is long DTV. (More...)
Summary
The extension of the NFL Sunday Ticket removes the major hurdle to the acquisition of DirecTV by AT&T.
The collar price of the offering reduces the prime impact up to the closing day.
At this point, investors have limited downside and solid upside with a price target of $95 on closing of the deal.
With the extension of the NFL Sunday Ticket, DirecTV (NASDAQTV) is all but assured to finalize the merger with AT&T (NYSE:T) for $95. Sure regulatory issues exist, but the limited overlap on pay-TV customers shouldn't pose a large threat to closing the deal. The real question is whether waiting around for the closing of the deal in early 2015 to collect $95 is worth it for a stock trading around $87.35. http://seekingalpha.com/article/2539335-directv-collecting-the-ticket-for-95
Oct. 3, 2014 2:39 PM ET | About: DIRECTV (DTV), Includes: T
Disclosure: The author is long DTV. (More...)
Summary
The extension of the NFL Sunday Ticket removes the major hurdle to the acquisition of DirecTV by AT&T.
The collar price of the offering reduces the prime impact up to the closing day.
At this point, investors have limited downside and solid upside with a price target of $95 on closing of the deal.
With the extension of the NFL Sunday Ticket, DirecTV (NASDAQTV) is all but assured to finalize the merger with AT&T (NYSE:T) for $95. Sure regulatory issues exist, but the limited overlap on pay-TV customers shouldn't pose a large threat to closing the deal. The real question is whether waiting around for the closing of the deal in early 2015 to collect $95 is worth it for a stock trading around $87.35. http://seekingalpha.com/article/2539335-directv-collecting-the-ticket-for-95