AT&T has agreed with the feds on the conditions paving the way for it to buy DirecTV, a source close to the process told The Post.
AT&T worked out the plan with the Justice Department, according to the source. It could not be learned what, if any, conditions the DOJ has placed on the merger.
In May AT&T agreed to buy satellite television company DirecTV for $48.5 billion.
Agreeing to comply means the Department of Justice will likely clear the AT&T deal in October. The FCC still has not ruled on the merger.
The move will allow AT&T to add DirecTV’s 20 million satellite-TV subscribers to its 5.7 million U-Verse TV service subscribers, which currently spans 22 states.
This merger has caused concern among those who believe the convergence of the few remaining telecom and cable giants will cause a rise in prices.
Senator Al Franken (D-Mn.) in July wrote in a letter to the Department of Justice, “I urge you to carefully scrutinize AT&T’s proposed acquisition of DirecTV to determine whether the deal is in consumers’ best interests.”
“If AT&T is permitted to acquire DirecTV, the combined entity will have enhanced power in virtually every corner of the telecommunications market—power that AT&T potentially could use to obtain an unfair advantage over consumers and competitors. As such, I have some concerns about this deal.”
Being able to work out a deal with the regulators is a good sign for Comcast so that it will know what conditions it will face for its proposed merger with Time Warner Cable, the source said.
The combined subscription base of 26 million customers would be second only to Comcast and TWC’s, which would boast 30 million combined.
AT&T declined to comment.