Microsoft has thrown its weight behind US telco AT&T’s US$48.5bn bid to buy satellite broadcaster DirecTV.
The technology giant called on the Federal Communications Commission (FCC), the country’s telecoms regulator, to approve the deal because it…
Microsoft has thrown its weight behind US telco AT&T’s US$48.5bn bid to buy satellite broadcaster DirecTV.
The technology giant called on the Federal Communications Commission (FCC), the country’s telecoms regulator, to approve the deal because it would further the “deployment of critical broadband infrastructure”.
AT&T has promised a number of broadband commitments to help push through its acquisition, such as rolling out an enhanced fibre-to-the-premises service to an additional two million locations.
Microsoft’s comments came as more than 90 former AT&T business partners, collectively the Minority Cellular Partners Coalition, said the regulator should block the deal over the telco’s alleged anti-competitive behaviour and fiduciary duty violations, or at least conduct an evidentiary hearing over its claims.
“Collectively, the individuals represented by the MCPC, as AT&T’s past partners in the wireless business, have experienced first-hand the lengths to which AT&T is willing to go to consolidate its wireless holdings, eliminate partners, and squelch competition,” the coalition claimed in a letter made public yesterday.
AT&T agreed back in May to buy DirecTV, which competes with Charlie Ergen’s Dish Network.
The deal is also subject to approvals from the Department of Justice, a small number of US states, and certain Latin American countries that the DTH group operates in.
DirecTV CEO Mike White was cited telling an investor conference earlier this month that his “best guess” was for the transaction to close in April.
However, a key sticking point remains the renewal of DirecTV’s Sunday Ticket package, which broadcasts NFL American football games.
AT&T has the right to walk away from the deal if DirecTV fails to renew its exclusive programming agreement with the NFL.
White reportedly said good progress had been made in those talks, with a deal expected before the end of the year.
Goldman Sachs and BofA Merrill Lynch are acting as financial advisers to DirecTV, and Weil, Gotshal & Manges, Jones Day and Wiltshire & Grannis are serving as legal counsel.
AT&T is advised by Lazard, but its large internal M&A team is reported to have taken the lead on the transaction.
