AT&T’s DIRECTV acquisition
At the completion of this transaction, the equity value of DIRECTV was ~$47.1 billion and its net debt was ~$15.9 billion. For each share, DIRECTV shareholders received 1.892 shares of AT&T and ~$28.50 in cash consideration.
AT&T’s pay-TV base after the DIRECTV acquisition
As we can see in the above chart, AT&T’s domestic video subscriber base increased significantly in 3Q15 after the DIRECTV acquisition. After this deal, AT&T’s pay-TV subscriber base in the US bypassed Comcast’s (CMCSA) (CMCSK) subscriber base. AT&T became the largest player in this metric and Comcast was the second most significant.
At the end of 3Q15, AT&T had ~25.4 million pay-TV subscribers in its domestic operations. Meanwhile, Comcast had ~22.3 million pay-TV customers. The third largest player in this metric in the US was Dish (DISH), with ~13.9 million subscribers at the end of 3Q15.
Instead of investing directly in AT&T’s stock, you may take a diversified exposure to the telecom company by investing in the iShares MSCI USA Minimum Volatility ETF (USMV). USMV held ~1.5% in the telecom company at the end of November 2015. Telecom stocks made up ~3.8% of this ETF on the same date.