U.S. DoJ Okays AT&T's DirecTV Acquisition; FCC Set To Approve AT&T-DirecTV Deal

(RTTNews) - The U.S. Department of Justice's Antitrust Division announced that it will close its investigation into AT&T Inc.'s (T) proposed $48.5 billion acquisition of DirecTV (DTV).

The announcement followed a statement by FCC Chairman Tom Wheeler that a final order approving the transaction has been circulated to the Commission.

"After an extensive investigation, we concluded that the combination of AT&T's land-based internet and video business with DirecTV's satellite-based video business does not pose a significant risk to competition," said Assistant Attorney General Bill Baer of the Antitrust Division.

In Meantime, AT&T said that it is pleased the Department of Justice has completed its review of its acquisition of DIRECTV. The company looks forward to gaining the approval of the Federal Communications Commission so it can quickly begin providing consumers with the benefits of this combination.

In addition, the U.S. Federal Communications Commission Chairman Tom Wheeler said an order has been circulated to the agency's other four commissioners recommending approval of the deal.

The proposed order outlines a number of conditions that will directly benefit consumers by bringing more competition to the broadband marketplace.

If the conditions are approved by the commissioners, 12.5 million customer locations will have access to a competitive high-speed fiber connection. This additional build-out is about 10 times the size of AT&T's current fiber-to-the-premise deployment, increases the entire nation's residential fiber build by more than 40 percent, and more than triples the number of metropolitan areas AT&T has announced plans to serve.

In addition, Tom said that the conditions will build on the Open Internet Order already in effect, addressing two merger-specific issues.

First, AT&T will not be permitted to exclude affiliated video services and content from data caps on its fixed broadband connections. Second, the company will be required to submit all completed interconnection agreements to the Commission, along with regular reports on network performance.

"Importantly, we will require an independent officer to help ensure compliance with these and other proposed conditions. These strong measures will protect consumers, expand high-speed broadband availability, and increase competition," Tom said.

Meanwhile, AT&T said it is pleased that an order to approve its DIRECTV transaction with certain conditions is circulating at the FCC. The company hopes the order will be approved by the Commission quickly and it expect to close shortly thereafter.

AT&T agreed in mid-May 2014 to acquire DirecTV for $95.0 per share in a cash and stock deal valued at about $48.5 billion. AT&T offered DirecTV shareholders $28.50 in cash and $66.50 in AT&T stock for every DirecTV share held by them.