Verizon dismissess DirecTV acquisition chatter

For more than a year, there has been recurring speculation that either AT&T or Verizon Communications could end up acquiring DirecTV, the key satellite TV partner to both telcos. However, last Friday in a speech at a NASDAQ conference, Verizon CEO Ivan Seidenberg said there was no strategic need for his company to make such a deal.

The speculators may now count Verizon out as a potential buyer of DirecTV, but don't be surprised if Seidenberg's quelling only gives more life to speculation that AT&T could become DirecTV's suitor. Satellite TV partnerships have played an important role for both telcos as their fledgling wireline TV offerings gradually have found solid footing. AT&T committed to DirecTV as its sole satellite partner only late last year after using both DirecTV and Dish Network for a time, and then only Dish for a few months before making DirecTV its final partnership choice.

As I noted in a recent column, Liberty Media Corp's John Malone has had dealings with AT&T in the past. If AT&T does end up buying DirecTV, how would that affect Verizon's partnership with the satellite player? Verizon and AT&T have previously ignored observations that they could eventually compete more frequently against one another on the TV and broadband fronts, but such a satellite acquisition would force Verizon to re-assess how it feels about AT&T.

For more:
- Reuters has this story

Related articles
Could history repeat for AT&T and John Malone?
DirecTV added 136,000 subscribers in Q3
But, is the honeymoon over for satellite and telcos?

Suggested Articles

Comcast, Charter and ViacomCBS today announced that they will all take equal ownership of Blockgraph.

Cord cutting will get worse for cable companies. But the financial impact for those same companies will be limited.

Comcast reached a distribution agreement with HBO Max and will offer the service for no extra charge to its existing HBO subscribers.