AT&T said Sunday that it had agreed to acquire America’s biggest satellite television provider, DirecTV, in a deal worth almost $50 billion.
The boards of the two companies met on Sunday to approve the plan, which is a stock and cash transaction for $95 per AT&T share.
“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens — mobile devices, TVs, laptops, cars and even airplanes. At the same time, it creates immediate and long-term value for our shareholders,” Randall Stephenson, the chief executive of AT&T, said in a statement.
He described DirecTV as the “best option” for AT&T “because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business.”
AT&T’s existing television service, called U-verse, only has about 5 million subscribers. DirecTV has more than 20 million.
Through the acquisition, AT&T will have a stronger hand in shaping the future of television distribution and consumption.