AT&T to buy DirecTV for $48.5 billion

AT&T announced Sunday that it is buying DirecTV, the top U.S. satellite TV operator, for $95 per share, or $48.5 billion, in the second mega-deal to shake up the U.S. television landscape this year.

The move gives AT&T, a telecommunications company, a larger base of video subscribers and increases its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February.

Dallas-based AT&T, the No. 2 U.S. cellular operator behind Verizon, also provides some TV and broadband services. The acquisition of DirecTV could improve the AT&T Internet service by pushing its existing U-verse TV subscribers into video over satellite service, a move that would free up bandwidth on its telecommunications network.

AT&T currently offers a high-speed Internet plan in a bundle with DirecTV television service. The acquisition would help it enhance the benefits of that alliance.

DirecTV, a California company, would continue to be based in El Segundo, following the merger.

The companies expect the deal to close within 12 months following a government review.

AT&T has considered a string of mega-acquisitions recently. They include an abortive bid for T-Mobile USA in 2011, as well as the potential takeover of Vodafone, which receded as a possibility after Comcast surprised the industry this year with a $45 billion bid for Time Warner Cable.

Wire services