The telecom giant considers the fate of DirecTV satellite unit as cord-cutting saps subscriber base
By Shalini Ramachandran and Drew FitzGerald Updated Sept. 18, 2019 8:48 pm ET AT&T Inc. is exploring parting with its DirecTV unit, people familiar with the matter said, a sharp reversal from Chief Executive Randall Stephenson’s strategy to make the $49 billion bet on the satellite provider a key piece of the phone giant’s future.
There could be regulatory hurdles to any deal with Dish, which has about 12 million subscribers. When Dish’s predecessor EchoStar Communications Corp. and DirecTV’s former owner Hughes Electronics Corp. tried to merge in 2001, regulators ultimately blocked it on antitrust grounds, worried that many rural Americans would be left with only a single option to get their television service.
SHARE YOUR THOUGHTS Is it the right move for AT&T to part ways with the satellite service DirecTV? Why or why not? Join the conversation below. AT&T had 26 million U.S. pay-TV customers after it bought DirecTV, but subscribers have declined at a brisk pace as cord-cutting drives them to other entertainment options. Its pay-TV business, which includes satellite TV, fiber-optic video service and online channels, ended the second quarter with under 23 million customers. Mr. Stephens warned earlier this month at an investor conference that it would lose more customers in the third quarter.
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