Was this really worth $48B not counting indirect cost which altogether will amount to $100B. ATT is trying to salvage their Directv purchase by creating this service to appeal to cord cutters.
http://www.wsj.com/articles/at-t-to-sell-directv-as-an-online-service-1456861734?ru=yahoo?mod=yahoo_itp
This is by far the dumbest, most wasteful deal ever, So for $67 billion, AT&T could pass 71 million new homes with gigabit fiber, and connect 21 million new subscribers (assuming an industry-average 30 percent take-rate). For its $67 billion, AT&T is getting a pay TV-only company, one with declining profits and none of the physical assets AT&T needs to compete in the wired communications market, which is where all the growth potential lies, now they figured " we don't need DTV equipment", lets stream.....
This waste is a sign of market failure. It’s the exact kind of market failure that should set off alarm bells in Washington. The purpose of the 1996 Telecom Act was to spur investment in robust, competitive and open networks that enable new industries and boost competition in existing ones. By now, we were supposed to see incumbents deploying outside of their home markets.all this while Wall Street takes investors for a ride..drinking the AT&T Kool-Aid
Excellent comment, the high mortality of companies life expectancy of a Fortune 500 company is below 50 years, because are unable to adapt their organization to changes in their environment. Boneheaded busness deals like the T-Mobile and DTV, lacks,,,,intelligence,
Who in the hell are they going to compete with? No one is going to leave Netflix, Hulu for this. So who is left slingtv. How many subscriptions do you need to acquire to make $48B back? What AT&T is going to charge $25 a month for this service. No way. So, this goes into the books as another screw up. Instead of dumping $48B maybe they could of given employees a nice bonus, expended their fiber, did something similar to TMobile, etc.
Bye Bye 48B...;, Haha haha !!!., An AT&T spokesman declined to comment on the potential pricing of DirecTV Now, saying only that it would be "competitive."
AT&T is running out of ....BAD ideas, That's what they do!!!
LOL. Exactly. Purchase Netflix or Hulu would of been a better move.
Netflix has a market cap of 45 billion, seems like we should have just bought them.