Although AT&T appears poised to close its $49 billion acquisition of DirecTV any day now, some see the move by the telecom giant as a step backwards.
AT&T "can't afford to do anything that might hasten DirecTV's decline; they are consigned to fighting yesterday's war," MoffettNathanson analyst Craig Moffett told Deadline. By purchasing the nation's largest satellite TV provider, AT&T is betting on "the preservation of the video status quo."
Moreover, to seal the deal with federal regulators, AT&T has committed to building out a fiber network to 12.5 million homes--that will be challenging for a company that has also promised investors up to $2.5 billion a year in cost savings via an acquisition of DirecTV.
Thus, as Deadline points out, AT&T may well launch a streaming service that appeals to millennials, giving the company a "sexy story." However, the company likely won't but much cash behind the effort. Article