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AT&T, Inc. Message Board

  • chicosan3 chicosan3 Aug 28, 2014 9:25 AM Flag

    dtv revenue 35 billion a year

    almost 4 billion in profit a year

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    • testing

    • Tell mr. small that. ッ

      Sentiment: Buy

      • 1 Reply to maxcine60
      • Go back to the drawing board. It is barely over 3B, not almost 4B. At 800 million/quarter you should then consider the pro forma net cash flow. AT&T is set to issue very close to 1B in new shares for the purchase and T is paying 46 cents a quarter on those shares. Amounts to just shy of 500 million in new dividend expense leaving 300 million for debt service. You have debt service on the fat 20B in DTV debt that AT&T is assuming in the deal. Assume a flat 5% bond issue on the 29B in debt service. For AT&T JUST to break even on cash flow on DTV's current income the debt will take a 25 year amortization. That is without consideration for any debt issued by AT&T to fund the cash portion of DTV purchase.

        Now for a cut and paste that I rarely do but you guys keep pumping the same line and I still have the same answer: This is without any consideration for defecting DTV subscribers with the onset of IP TV. AT&T owns wired line in PARTS of 21 states=T's inability to recapture those defecting satellite for streaming. DTV deal will not pay for itself. It is a horrible dilution to existing AT&T shareholders.

        Not so enormous for AT&T is it? [crickets] Just bloats the company with another asset but this one is more prone to revenue/profit decay than the average bear because of the onset of IP TV.

 
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