Why Comcast Should Be Happy About the AT&T Deal

Telecom giant AT&T  (NYSE: T  ) might acquire satellite TV company DIRECTV (NASDAQ: DTV  ) . Should investors fear this deal?

Today on Investor Beat, Chris Hill and Motley Fool analyst Mike Olsen talk about the biggest proposed deal of the day. In the wake of the news, both AT&T and DIRECTV stocks were down Tuesday. While many investors may feel like hanging up on the deal, Olsen sees some unappreciated nuances to it. Dow Jones Industrials component AT&T is best known for telecommunications, but many may be surprised to learn the company is also in the video business, with 5.5 million subscribers to its U-verse service. By acquiring DIRECTV, AT&T can become a meaningful provider in the converged-media space, which includes telephone, computer, Internet, and television consumption.

Hill and Olsen then discuss the influence of content providers and how Comcast  (NASDAQ: CMCSA  ) should feel about the possible deal. Olsen notes that while the deal isn't good for consumers, the acquisition will maintain the cable oligopoly. With Comcast's acquisition deal with Time Warner Cable (NYSE: TWC  )  soon to exert its influence on content providers, AT&T continues the trend.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it: Every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in explosive lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2956122, ~/Articles/ArticleHandler.aspx, 11/28/2014 5:05:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement