5/19/2014 9:42:49 AM
Vodafone shares hit as AT&T buys DirecTV
Vodafone shares fell today following news that telecoms firm AT&T is buying satellite television group DirecTV for $50bn.
The deal nails speculation that AT&T was still considering buying Vodafone, despite the US telecoms giant ruling out a bid some months ago.
Vodafone’s shares were down slightly by 0.9% this morning, following the news.
The merged firm sees AT&T enter the quadplay market, offering customers phone, broadband and video services. It will have around 26 million video subscribers and a broadband network with 70 million customer locations.
Vodafone was tipped as a target for AT&T as it looked at possible acquisitions in Europe but the US operator turned its sights back to its home market after Comcast purchase of Time Warner Cable in February. The DirecTV deal gives AT&T more muscle to compete with Time Warner Cable and Comcast Corporation.