The History of DirecTV
DirecTV is a broadcasted direct American satellite service provider and that is headquartered in El Segundo, California. DirecTV became a subsidiary of AT&T, as of 2015 (Noonan, 2015). The satellite service, launched in June of 1994, and it relays digital satellite television and audio to households in the United States, Latin America and the Caribbean (Noonan, 2015). After being approved by the United States Federal Communications Commission and United States Department of Justice, AT&T's acquisition of DirecTV in a purchase valued at $48.5 billion was completed on July of 2015 (Noonan, 2015).
As of September 30, 2012, DirecTV U.S. was noted for having 19.981 million subscribers totaling for the quarter of US$5.769 billion (Noonan, 2015). DirecTV offers service to bars, restaurants, hotels, dorms, and hospitals through their DirecTV for business service. The company also offered mobile service for cars, boats, and RVs (DirecTV Mobile) as well as aircraft (DirecTV Airborne) in cooperation with Connexion by Boeing. Beginning in November 2016, DirecTV Now will be an internet streaming TV service (Noonan, 2015). DirecTV is the very first entertainment service in all of the United States to provide all digital quality, multi-channel television programming with an 18-inch satellite DISH (Noonan, 2015). DirecTV provides those who live in rural communities with access to programming equivalent to what their urban and suburban neighbors are receiving. DirecTV consists of four main units that include DirecTV U.S., DirecTV Latin America, PanAmSat, and Hughes Network Systems. This organization serves over 12 million U.S. Satellite TV customers and another 1.5 million subscribers in Latin countries (Noonan,2015). Analysis of DirecTV DIRECTV carries economic value by striving to deliver the best video experience a combination of unique and compelling content, technological innovation and industry-leading customer service. …show more content…
They have a proven track record of returning value to our shareholders and benefiting all stakeholders, through the successful execution of our strategy to: transform the customer service experience; advance the entertainment experience both inside and outside of the home; strike a balance between growth and profitability (Noonan, 2015).
DIRECTV recently reported its fourth-quarter numbers, and the results came in ahead of expectations. Revenue for the quarter was $8.53 billion, which narrowly surpassed the average analyst estimate of $8.52 billion (Noonan, 2015). Earnings per share came in at $1.53, passing expectations for earnings of $1.40 per share by roughly 9.2% (Noonan, 2015). The company's share price experienced very little movement in the days of trading following the announcement of the company's results. Whether or not DIRECTV's proposed merger with AT&T goes through is of big importance for both companies. …show more content…
For DIRECTV, the merger with AT&T provides a way to improve its reach as an Internet provider and safeguard its relevance by diversifying for a future that looks to have an increasing number of cord-cutters. CEO and President Michael White stated that the successful completion of the merger was DIRECTV's top priority in 2015 (Noonan, 2015). So the company will remain confident to close their transaction some time before the end of the first half of the year, although understandably, there's still some uncertainty as to the exact date. In the meantime, employees at DIRECTV continue to focus on running our business as well on a stand-alone basis. DIRECTV and AT&T have secured the state and international approvals needed to go forward with the deal and are now waiting on approval from the FCC and the Department of Justice. The FCC is expected to give its stance on AT&T's proposed $48.5 billion buyout of DIRECTV around March 23, though that deadline is informal. DIRECTV Latin America had a solid 2014, but 2015 may have stronger headwinds (Bernardin, 2015). DIRECTV's Latin America segment saw shrinking margins in 2014, but it was still a solid year for new customer additions. The company fell short of its goal of adding 1 million new subscribers in Latin America, instead adding 903,000 subscribers, but the miss was attributed to a deliberate focus on securing high-value customers in a challenging business climate (Bernardin, 2015). The current macroeconomic outlook for 2015, will likely be even more challenging than 2014. So, given that the company does not have any events in 2015 to boost demand, they expect significantly less subscriber growth in the region than 2014 (Bernardin, 2015). Although the company plan on solid performance
DirecTV is a broadcasted direct American satellite service provider and that is headquartered in El Segundo, California. DirecTV became a subsidiary of AT&T, as of 2015 (Noonan, 2015). The satellite service, launched in June of 1994, and it relays digital satellite television and audio to households in the United States, Latin America and the Caribbean (Noonan, 2015). After being approved by the United States Federal Communications Commission and United States Department of Justice, AT&T's acquisition of DirecTV in a purchase valued at $48.5 billion was completed on July of 2015 (Noonan, 2015).
As of September 30, 2012, DirecTV U.S. was noted for having 19.981 million subscribers totaling for the quarter of US$5.769 billion (Noonan, 2015). DirecTV offers service to bars, restaurants, hotels, dorms, and hospitals through their DirecTV for business service. The company also offered mobile service for cars, boats, and RVs (DirecTV Mobile) as well as aircraft (DirecTV Airborne) in cooperation with Connexion by Boeing. Beginning in November 2016, DirecTV Now will be an internet streaming TV service (Noonan, 2015). DirecTV is the very first entertainment service in all of the United States to provide all digital quality, multi-channel television programming with an 18-inch satellite DISH (Noonan, 2015). DirecTV provides those who live in rural communities with access to programming equivalent to what their urban and suburban neighbors are receiving. DirecTV consists of four main units that include DirecTV U.S., DirecTV Latin America, PanAmSat, and Hughes Network Systems. This organization serves over 12 million U.S. Satellite TV customers and another 1.5 million subscribers in Latin countries (Noonan,2015). Analysis of DirecTV DIRECTV carries economic value by striving to deliver the best video experience a combination of unique and compelling content, technological innovation and industry-leading customer service. …show more content…
They have a proven track record of returning value to our shareholders and benefiting all stakeholders, through the successful execution of our strategy to: transform the customer service experience; advance the entertainment experience both inside and outside of the home; strike a balance between growth and profitability (Noonan, 2015).
DIRECTV recently reported its fourth-quarter numbers, and the results came in ahead of expectations. Revenue for the quarter was $8.53 billion, which narrowly surpassed the average analyst estimate of $8.52 billion (Noonan, 2015). Earnings per share came in at $1.53, passing expectations for earnings of $1.40 per share by roughly 9.2% (Noonan, 2015). The company's share price experienced very little movement in the days of trading following the announcement of the company's results. Whether or not DIRECTV's proposed merger with AT&T goes through is of big importance for both companies. …show more content…
For DIRECTV, the merger with AT&T provides a way to improve its reach as an Internet provider and safeguard its relevance by diversifying for a future that looks to have an increasing number of cord-cutters. CEO and President Michael White stated that the successful completion of the merger was DIRECTV's top priority in 2015 (Noonan, 2015). So the company will remain confident to close their transaction some time before the end of the first half of the year, although understandably, there's still some uncertainty as to the exact date. In the meantime, employees at DIRECTV continue to focus on running our business as well on a stand-alone basis. DIRECTV and AT&T have secured the state and international approvals needed to go forward with the deal and are now waiting on approval from the FCC and the Department of Justice. The FCC is expected to give its stance on AT&T's proposed $48.5 billion buyout of DIRECTV around March 23, though that deadline is informal. DIRECTV Latin America had a solid 2014, but 2015 may have stronger headwinds (Bernardin, 2015). DIRECTV's Latin America segment saw shrinking margins in 2014, but it was still a solid year for new customer additions. The company fell short of its goal of adding 1 million new subscribers in Latin America, instead adding 903,000 subscribers, but the miss was attributed to a deliberate focus on securing high-value customers in a challenging business climate (Bernardin, 2015). The current macroeconomic outlook for 2015, will likely be even more challenging than 2014. So, given that the company does not have any events in 2015 to boost demand, they expect significantly less subscriber growth in the region than 2014 (Bernardin, 2015). Although the company plan on solid performance