ATT, a no-growth company bought…a slow-growth company. It’s not that DIRECTV is a bad company, it’s just that growth had slowed,
The reason for the AT&T-DIRECTV merger was because AT&T needed something to energize its growth. AT&T is expanding video delivery beyond its flagship U-Verse and into satellite. With DIRECTV’s, so
Investors Are Left With a Weird Situation, Since AT&T will be loaded with billions in debt, say 100 Aprox,
The debt is ginormous, but manageable because both companies are cash flow businesses. Don’t have any illusions about it ever getting paid off, though.
Why would anyone want to hold AT&T stock, post-merger, when growth is going to be marginal? EPS is being financially engineered because both companies are engaged in stock buybacks.
I say it again — the dividend, but are they selling assets to cover for it? Weird isn't?