[Infowarrior] - AT&T, DirecTV announce $48 billion merger

[Richard Forno]

AT&T, DirecTV announce $48 billion merger

By Cecilia Kang

AT&T and DirecTV on Sunday announced an approximately $48 billion merger that would create a new telecom and television behemoth to rival cable firms — while raising fresh concerns over competition and options for consumers.

AT&T would gain DirecTV’s 20 million U.S. subscribers, a company with strong cash flows and an ability to fatten its bundle of offerings. The combined firm would be able to offer phone, high-speed Internet and paid television subscriptions to more customers — packages only cable firms such as Comcast have been able to sell.

It is the latest mega-merger to be announced this year in a dramatically shifting telecommunications industry. The titans of the industry have recently rushed to bulk up — in overall size and in diversity of service offerings — as their legacy phone and television businesses fray and consumers turn to the Internet for communications and entertainment.

The deals, which must be approved by federal regulators, have prompted new concern that consumers could be left with fewer options and even higher prices after years of creeping increases in monthly bills. Last year, U.S. cable television prices increased 5.1 percent to an average $64, triple the rate of inflation, according to a government report.

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http://www.washingtonpost.com/business/technology/atandt-directv-announce-50-billion-merger/2014/05/18/62ffc980-dec1-11e3-810f-764fe508b82d_story.html

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Just because i'm near the punchbowl doesn't mean I'm also drinking from it.