DALLAS (AP/CBSDFW.COM) – Dallas-based AT&T says it is buying El Segundo, Calif.-based DirecTV for $95 per share, or $49 billion.
The move is aimed to give the telecommunications company a larger base of video subscribers and increases its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February.
AT&T’s proposed combination could improve its Internet service by pushing its existing U-verse TV subscribers into video over satellite service, and thereby free up bandwidth on its telecommunications network.
AT&T currently offers a high-speed Internet plan in a bundle with DirecTV television service. The acquisition would help it further reap the benefits of that alliance.
DirecTV would continue to be based in El Segundo following the merger.
The companies expect the deal to close within 12 months following a government review.
(©2014 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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