AT&T exploring Deal to sell off DIRECTV.

[CSM]

If bought would the new company run the billing, customer service and tech support better than AT&T?

 

[navychop]

Why would anyone trust AT&T?

 

[ncted]

If bought would the new company run the billing, customer service and tech support better than AT&T?

I personally would not expect that to be the case. Satellite TV is a declining business, and I expect that the customer service will follow suit no matter who owns it.

 

[Juan]

There is no new company...wait for the complete details

 

[CSM]

There is no new company...wait for the complete details

Wouldn't the new owners be Apollo Global Management, or Churchill Capital Corporation IV? Unless AT&T turned them down?

 

[comp9]

Wouldn't the new owners be Apollo Global Management, or Churchill Capital Corporation IV? Unless AT&T turned them down?

ATT will still be the majority owner

 

[Juan]

Wouldn't the new owners be Apollo Global Management, or Churchill Capital Corporation IV? Unless AT&T turned them down?

Just a piece of the action

 

[MitchDeerfield]

ATT will still be the majority owner

Actually AT&T will be the minority owner and will no longer manage DirecTV. That is the whole point.

 

[Juan]

Actually AT&T will be the minority owner and will no longer manage DirecTV. That is the whole point.

Thats not true at all...only selling 15%... but wait for the final details

 

[CSM]

Isn't the whole point of selling DTV is getting it off of their books to pay down their debt? Also like others said in this thread still keep some of the profits?

 

[Juan]

Isn't the whole point of selling DTV is getting it off of their books to pay down their debt? Also like others said in this thread still keep some of the profits?

No

 

[ncted]

No

Well, yes and no. They do want cash to pay debt, but they also want to look like they are doing something about a declining business line. Gotta make the Street happy.

 

[MitchDeerfield]

Thats not true at all...only selling 15%... but wait for the final details

Why would they waste their time selling 15 percent of DirecTV? That's pocket change for them.

 

[NYDutch]

Thats not true at all...only selling 15%... but wait for the final details

Every article I've seen relative to the DTV auction only mentions AT&T possibly retaining a minority interest. The two primary results AT&T appears to be interested in by offloading DTV are debt reduction and spectrum purchases.

 

[Juan]

Every article I've seen relative to the DTV auction only mentions AT&T possibly retaining a minority interest. The two primary results AT&T appears to be interested in by offloading DTV are debt reduction and spectrum purchases.

Wait for the facts on what they are selling...perhaps its alot more than directv...i recommend reading the nytimes or wall street journal rather than blog articles like swanni..they just regurgitate rumours found on the web

 

[CSM]

Wait for the facts on what they are selling...perhaps its alot more than directv...i recommend reading the nytimes or wall street journal rather than blog articles like swanni..they just regurgitate rumours found on the web

I read that they may also be selling UVerseTV and AT&T TV Now.

 

[Juan]

I read that they may also be selling UVerseTV and AT&T TV Now.

I know

 

[slice1900]

One thing I don't understand why wouldn't AT&T want to sell all DTV and totally get it of their books to pay down their debt? Especially if they think streaming is the future? Would AT&T still be able to get a profit off of it if another company owns DTV? How can AT&T share the customer base to get the profits and channel negotiations?

The sale being rumored gets ALL Directv's debt off their books, and onto the books of the new entity that will be jointly owned by AT&T and the buyer. They will also get paid a percentage of the $15 billion sales price (i.e. if they sell a 40% share they'll get $6 billion in cash)

Corporations have little incentive to pay down debt when interest rates are as low as they are. Removing it from their books by "selling" it is desirable, paying it off not so much. The money they get from the sale is unlikely to be used for debt retirement when they are probably only paying 2% on a 20 or 30 year note. They'd more likely buy back stock, or use it to fund dividends.

 

[ncted]

Corporations have little incentive to pay down debt when interest rates are as low as they are. Removing it from their books is attractive, but the money they get from the sale is unlikely to be used for debt retirement when they are probably only paying 2%. They'd more likely buy back stock, or use it to fund dividends.

Normally very true. However, AT&T does not have a normal amount of debt.

 

[Inclined Orbit]

Why would they waste their time selling 15 percent of DirecTV? That's pocket change for them.

If ATT sells a stake in DirecTV to someone that knows what they are doing and can turn the company around, it would be a win for ATT, the partner and customers. Might allow ATT to be a little more hands off, avoiding making more bad decisions.