Seems so: The satellite company has hired Goldman Sachs to help evaluate a possible combination The Wall Street Journal reported today — contributing to a late afternoon spike in DirecTV‘s shares. The company closed +8% to $81.35 and touched $88.55, an all time high. Yesterday DirecTV CEO Michael White tried to besmirch apparently accurate and newsworthy reports about AT&T‘s approach as mere “media rumors and speculation.” He added that he doesn’t “view it as productive to speculate about alternative business combinations, which may or may not occur.” But he also chose not to tell investors the facts. Brean Capital’s Todd Mitchell says a combination would give AT&T — which has 5.7M video customers on its U-verse platform — “much needed scale in a post Comcast-[Time Warner Cable] world.” But Guggenheim Securities’ Michael Morris says that consolidation is “unlikely in the current environment” because competition “appears to be limiting pricing growth to consumers, likely a positive from a regulatory perspective.”
Are DirecTV And AT&T Becoming Serious About Making A Deal?
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