Wall Street Journal says cash-and-stock deal is imminent
AT&T Inc. is expected to strike a deal with DirecTV in as early as two weeks, the Wall Street Journal reported on Monday, citing sources.
The mobile services provider and the satellite TV company are discussing a cash-and-stock deal, the sources told the Journal. The discussed price of about $100 per share places the total market valuation for DirecTV at around $50 billion, Bloomberg reported.
That valuation is roughly 29 percent above DirecTV’s price on April 30, which was before the Wall Street Journal first reported the conversations.
Under the plan, DirecTV management will continue to run the company as a unit of AT&T. DirecTV Chief Executive Officer Mike White plans to retire after 2015. DirecTV and AT&T are planning for a 12-month regulatory process.
DirecTV is working with advisers including Goldman Sachs Group to evaluate a possible combination following a recent takeover approach, Reuters reported last week.
AT&T declined to comment, while DirecTV representatives were not immediately available for comment.