iWorld
Brazil gives the green signal to AT&T to acquire DirecTV
NEW DELHI: Brazil’s Agencia Nacional de Telecomunicacoes (ANATEL) and Trinidad & Tobago have given approval to American telecom service provider AT&T for the proposed $48.5 billion acquisition of DirecTV.
Earlier, AT&T had received an anti-trust approval in Brazil. Regulatory review is now complete in both countries.
In July, the merger review process was completed among regulators at the US state level.
AT&T’s Petitions with the Public Service Commissions in Louisiana and Arizona did not receive protests or interventions and the Petitions were deemed approved in July.
AT&T has also filed an informational notice with the Hawaii Commission.
It has committed to expand and enhance its deployment of both wireline and fixed wireless high-speed internet to cover at least 15 million customer locations across 48 states – most of them in underserved rural areas.
Meanwhile, DirecTV extended its exclusive $1.5 billion contract to sell the Sunday Ticket package of National Football League games.
The deal removes a potential roadblock to AT&T’s proposed $48.5 billion purchase of the satellite TV provider. AT&T had the right to pull out of the deal if DirecTV was unable to renew its Sunday Ticket pact.
DirecTV’s annual payments to the NFL would average $1.5 billion for eight years.
Reuters reported that DirecTV sells the package of Sunday games to its subscribers for about $300 a year, a key marketing advantage over cable TV competitors. Roughly two million people receive the service, which allows them to watch games outside of their local markets.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
