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Report: AT&T targets media acquisitions

AT&T CEO Randall Stephenson is reportedly studying a list of potential takeover targets as the company plans a transition from a content delivery network to a content creation network. AMC Networks, Discovery and Scripps Networks were all named by Bloomberg as potential AT&T takeover targets.

The carrier has made no secret of its media ambitions. AT&T was widely believed to be a bidder for Hulu in 2013, and the following year the company said it would partner with The Chernin Group to invest in media properties. Although Yahoo’s internet business went to Verizon Communications, AT&T is thought to have considered a bid for that company as well, possibly passing because it is more interested in original video programming than in owning an advertising network. At an investor conference late last year, Stephenson advised analysts to “stay tuned” for coming announcements about AT&T’s next moves, implying that video programming is a key element of the company’s long-term plan.

AT&T’s $48.5 billion purchase of DirecTV gives the carrier a TV play, but so far AT&T has not announced many content acquisitions. That doesn’t mean the company is not busy making deals behind the scenes. The carrier is expected to launch a mobile video streaming service, DirecTV Now, before the end of the year.

Owning content would give AT&T a way to do more business in markets outside the United States, where the company may not own spectrum or fiber. The carrier demonstrated its international ambitions with the purchases of Nextel Mexico and Iusacell, but buying those types of assets in other countries might be challenging. A video-programming unit would be an asset that AT&T could potentially market worldwide.

AT&T is clearly planning to market its content separately from its network. When the carrier announced DirecTV Now earlier this year, it said that users would be able to access premium content regardless of their wireless provider.

DirecTV’s pay-for-programming model may be the template for some of AT&T’s future video initiatives. The joint venture that AT&T launched with The Chernin Group has invested in a company called Ellation Media, which is planning to offer subscriptions to ad-free programming about gaming and animation.

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ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.