Wednesday, December 24, 2014

Is AT&T Harming DirecTV Shareholders?


Summary

  • The AT&T and DirecTV deal isn't set to be finalized until next year.
  • AT&T is potentially the big bidder at the AWS-3 spectrum auction that could harm the valuation ultimately obtained by DirecTV shareholders when the deal closes.
  • The domestic wireless pricing wars and wireless spectrum auctions continue to dilute the potential windfall for DirecTV shareholders.
With AT&T (NYSE:T) in the middle of closing the DirecTV (NASDAQ:DTV) merger, the apparent aggressive spending on the domestic wireless auction brings up corporate governance issues for shareholders. Along with the domestic wireless pricing war, the situation highlights the issues with corporate stock deals that take so long to finalize. It leaves investors of the acquired company trapped waiting to cash out of the stock while hoping the acquirer doesn't make moves in the meantime to impact the stock.

 Read the full article at Seeking Alpha.

 Disclosure: Long T and DTV. Please read the disclaimer page for more details.

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