DirecTV is Down Today

In last night’s Flash Alert, I said to expect DirecTV ($DTV) to gap up close to $95 per share, which is AT&T’s price. Instead, DTV is lower this morning, and currently around $84.50 per share.

What’s going on? It appears that the market sees the odds for this deal closing on time as far from a sure thing. Bear in mind that both boards approved the deal unanimously. Shares of AT&T are currently off 0.8% which still places it well within the deal’s “collar.”

As usual, there are regulatory concerns and there are worries about DirecTV’s deal with the NFL for the Sunday Ticket. That shouldn’t be a problem. It’s a very lucrative contract for both sides. AT&T would be allowed to pull out of the deal if DTV and the NFL can’t reach a deal.

Posted by on May 19th, 2014 at 11:20 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.