AT&T's bid to merge with DirecTV is expected to be at the top of the agenda at Allen & Co.'s annual Sun Valley, Idaho, conference, long seen as an off-the-record industry incubator.
America Movil's shareholders Inmobiliaria Carso and Control Empresarial de Capitales are going to purchase AT&T's 8.27 percent stake in the company for $5.57 billion.
AT&T CEO Randall Stephenson told separate antitrust subcommittees in both the U.S. House and Senate that his company's proposed acquisition of DirecTV would "put downward pressure on cable products--cable bundles, cable video and cable broadband" but stopped short of assuring elected representatives that prices would be coming down.
AT&T has told federal regulators that its proposed acquisition of DirecTV could give it more muscle to reduce programming costs by 20 percent.
AT&T has made another concession to get regulatory approval of its $48.5 million proposal to acquire DirecTV by promising that it would extend fiber to the home (FTTH) services to more locations.
AT&T's proposed $48.5 billion deal to acquire DirecTV will not only make it a powerhouse video provider. As part of the deal with DirecTV, AT&T has committed to expand its broadband services footprint to 15 million customer locations, particularly in unserved rural areas where the telco does not provide service today, using a combination of fiber to the premises (FTTP) and wireless local loop technologies.
AT&T has been in discussions with DirecTV about purchasing the satellite TV provider, according to a report in The Wall Street Journal citing unnamed sources close to the talks.
DirecTV has become the latest service provider that is reportedly interested in purchasing online video purveyor Hulu for $1 billion.
America Movil reported on Wednesday that Q4 2012 revenues dropped 1.1 percent sequentially to MXN 198 billion (USD 15.6 billion) despite seeing strong gains in both wireless and pay-TV service.
Vivendi's Global Village Telecom (GVT) has now attracted the interest of three Latin American satellite and cable operators: DirecTV, Liberty Global and America Movil as well as a consortium of private equity companies.