AT&T's Growth Strategy Is Taking Shape

By Travis Hoium – May 21, 2014 at 12:15PM

NYSE: T

AT&T

Market Cap

$117B

Today's Change

(1.01%) $0.17

Current Price

$16.48

Price as of April 23, 2024, 1:35 p.m. ET

AT&T sees an opportunity to add more content delivery capacity as well as content in the DirecTV deal.

AT&T's (T 1.01%) $48.5 billion buyout of DirecTV (DTV.DL) finally became a reality over the weekend and if it can pass regulatory muster, it'll reshape the company's future. AT&T is now clearly positioning itself as a dominant content delivery company through wireless, satellite, and wireline services.

This positions it well for the future as consumers cut the cable cord. They'll still need access to broadband as well as content, which is an underappreciated piece of the AT&T/DirecTV deal. AT&T has an out if DirecTV can't renew its Sunday NFL Ticket deal with the NFL. If it can, AT&T can offer the service to over 100 million existing wireless subscribers.

It's possible that a package of new subscription services will be available on multiple platforms when these content and delivery businesses are combined. Specialist Travis Hoium covers why he thinks this is a great deal for AT&T in the video below.

Travis Hoium manages an account that owns shares of AT&T. The Motley Fool recommends DirecTV. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.