Can someone explain this deal please??
Who is $cr€wing whom? new DTV, DTV, TPG, ATT and the Banks?
ATT paid ~70B ( ~50B value+ 20B debt) to get DirecTV.
ATT spins off the new company with UVERSE as a 16B valuation.
UVERSE itself with 4M subs and an ARPU of 1500$ earns about 0.6-0.8B per year and is worth @10xPE = 8B.
DirecTV itself with 15M subs and an ARPU of 1700$ earns about 3B$ per year and is worth @10xPE = 30B$. Total conservatively at about 40B$.
Essentially transfer 7B debt from ATT to New DTV.
Is the deal making a bigger hole for ATT or is it reducing the hole they created for themselves??
Great job Stankey. Making some serious moves to improve the company.
My wife says it best - "As long as the paychecks clear the bank, just shut up and take their money".
Simple explanation is that the workers are being paid. Just let the people that get paid do their job.
Yes, add another 23B for spectrum auction. Talk about robbing Peter to pay Paul. Debt has T in a stranglehold.
They didn't gain anything debt-wise because they are now financing $23 billion in spectrum as well ... They will be debt ridden and it will get worse as time goes by.
Once the initial dividend cut finally happens and the stock price starts dropping, we will go the way of Frontier. Or at least they spun off Frontier like piece of AT&T will die.
Don't worry thought they can do a 100 for 1 reverse split and that will fix everything ... for a week anyway ... until the new shares are shorted into oblivion!