With all the talk centered around Comcast's proposed acquisition of Time Warner Cable, the news that AT&T might be interested in DirecTv may have come as no surprise. Given that a larger Comcast would cover more than 30 mm subscribers, another competitive presence would be needed to keep them in check. Some wondered if a DirecTv and Dish Network merger would be the possible solution. The problem is that they lack a broadband business to match the size of Comcast. With AT&T and DirecTV, more synergy occurs, enabling this possible new entity to better sell a triple play of services. And perhaps it may get Verizon itching to do something similar. Could a FIOS and Dish Network business model be the next possibility?
Whether any of this happens remains to be seen. How real an AT&T and DirecTv deal is remains to be seen. Some even think that AT&T would prefer to hook up with Dish. The idea for either is valid. To compete with Comcast and a post Time Warner Cable acquisition, the need to get bigger quickly seems of utmost importance.