Big winner in DTV deal

[AchilliesValue]

Summary Terms of Transaction   

 

DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. The stock portion will be subject to a collar such that DIRECTV shareholders will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing and 1.724 AT&T shares if AT&T stock price is above $38.58 at closing. If AT&T stock price at closing is between $34.90 and $38.58, DIRECTV shareholders will receive a number of shares between 1.724 and 1.905, equal to $66.50 in value.

 

This purchase price implies a total equity value of $48.5 billion and a total transaction value of $67.1 billion, including DIRECTV’s net debt. This transaction implies an adjusted enterprise value multiple of 7.7 times DIRECTV’s 2014 estimated EBITDA. Post-transaction, DIRECTV shareholders will own between 14.5% and 15.8% of AT&T shares on a fully-diluted basis based on the number of AT&T shares outstanding today.

 

- See more at: http://about.att.com/story/att_to_acquire_directv.html#sthash.yWXYh9Al.dpuf

 

Anyone else recall the last time John Malone sold something to AT&T?  Holds 27.7M shares worth ~$2.6 Billion at the transaction price.  Also is about to have $780M (less taxes) in dry powder.

 

All while spins are taking place at LMCA, LINTA, and LVTNA... interesting times.

 

Anyone want to wager the one he views most attractive won't occur until after the DTV deal closes?

[constructive]

Holds 27.7M shares worth ~$2.6 Billion at the transaction price.

 

Source? I thought Liberty/Malone had reduced DTV ownership to ~0 since 2009.

[AchilliesValue]

Holds 27.7M shares worth ~$2.6 Billion at the transaction price.

 

Source? I thought Liberty/Malone had reduced DTV ownership to ~0 since 2009.

 

Hmm... you might be right.  I grabbed it from Bloomberg (attached), but didn't notice the filing was from 2010.  It isn't mentioned in the proxy, but it is below 5% so it shouldn't have to be disclosed.  My mistake feel free to delete Sanjeev.

[AchilliesValue]

Seems like Bloomberg is unsure of how much he owns, but credits the full stake in his net worth calculation.  From the blurb from his spokesman it sounds like he probably owns some, but less than I originally thought.