Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FCC clears AT&T, DirecTV deal; acquisition closes, (Jul 24, 2015)

By Lynn Stanton,TR Daily

The Federal Communications Commission (FCC) has approved license and authorization transfers involved in the proposed merger of AT&T, Inc., and DirecTV, Inc., with conditions that include commitments by the combined company to submit its interconnection agreements to the Commission for review and refrain from discriminatory practices in applying data caps and usage-based pricing that would advantage its video programming distribution service over online, or “over-the-top,” video services.

The FCC approval follows the decision of the Department of Justice Antitrust Division to close its investigation into the transaction after concluding that the combination was not anticompetitive.

Under the order, the combined company also will be required to expand deployment of fiber-to-the-premises broadband offerings to 12.5 million customer locations, as well as to deploy gigabit-speed connectivity to schools and libraries that are eligible for E-rate support.

Other merger conditions in the order include the provision of an “affordable, low-price standalone broadband service to low-income consumers” in the company’s broadband service area, an internal compliance officer to report on compliance with the merger conditions, and an independent, external compliance officer to monitor compliance with the merger conditions.

The text of the FCC’s order was not immediately available.

Shortly after the FCC’s announcement, AT&T announced that it had closed the acquisition, which it said makes it the largest provider of pay TV services in the world, with more than 26 million customers in the U.S. and more than 191 million customers in Latin America. Its high-speed broadband offerings are available at 56 million customer locations, and 16 million customers in that footprint subscribe to its high-speed Internet access service, it added.

The company announced that John Stankey will be chief executive officer of AT&T Entertainment & Internet Services, with responsibility for the combined DirecTV and AT&T Home Solutions operations. Mr. Stankey will report to AT&T Chairman and CEO Randall Stephenson. DirecTV President, Chairman, and CEO Mike White plans to retire.

AT&T said it would provide complete updated 2015 financial guidance at a publicly webcast conference for financial analysts in the coming weeks.

Companies: AT&T, Inc.; DirecTV, Inc.

News: AcquisitionsMergers Antitrust