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AT&T could be headed for multi- billion dollar deal

Most New Jersey residents likely have some familiarity with DirecTV. New Jersey residents may also be familiar with AT&T. It looks as if the satellite provider and the second largest wireless provider may be on the verge of a deal worth nearly $50 billion.

According to sources, AT&T Inc is on the verge of closing a deal to buy DirecTV for close to $95 a share. There are still many details to work out such as what the break-up fee would be, as well as what the role of current DirecTV CEO Mike White would be. This is not the first time that AT&T and DirecTV have entertained the idea of merging. For the past 10 years, the two have been courting, but felt the regulatory environment was not appropriate for a merger.

As there are also talks of Comcast merging with Time Werner Cable, this could be the time for AT&T and DirecTV. This would be perfect timing for DirecTV to have a partner as satellite TV has seen a decline in recent years.

Business sales or mergers can involve complicated financial components. Even when a bigger company buys a smaller company as in the above case, a merger exists when any two companies come together to form one company. Making the decision to merge with another business can be one of the most important decision one makes in their lifetime.

Before the transaction can happen, one must investigate and learn all they can about their potential merger or acquisition. This includes learning about the company's regulatory complaints, shareholders, articles of incorporation, bylaws and their organization. Mergers can benefit both parties, but it is important that due diligence is executed before any transaction takes place.

Experienced business law professionals are available to assist businesses looking to expand by merger or those who wish to engage in the sale of a business. They can assist those companies with exit strategies and ensure their rights are protected throughout the transaction.

Source: Reuters, "AT&T in talks to buy DirecTV for nearly $50 billion: sources," So Young Kim and Ronald Glover, May 13, 2014

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