Here’s why the reason that AT&T, the US based company, want to expand by purchasing DirecTV. For AT&T, the deal is mainly about gaining scale in video and acquiring the bargaining power that comes with that to license premium content. It is particular about the looming specter of a tie-up between Comcast and Time Warner Cable.
The company, AT&T will combine its 5.7 million U-verse TV customers with DirecTV’s roughly 20.3 million US subscribers. “All of a sudden you’re talking about the number-two pay-TV provider in the country,” says Dan Rayburn, an analyst with Frost & Sullivan. “That means you can negotiate for better programming, and at a better price.”