Telegraph Telephone and Television

     New York - To offer better video options to customers and to get an owner with potentially $8 billion in cash, DirectTV has appealed to AT&T for a possible merger.  Talks for the merger deal heated up after Comcast unveiled plans to buy Time Warner Cable.  AT&T and Direct
TV have had an on-again-off-again relationship for the past few years, this is not the first time they have talked about getting together, says AT&T Chairman Randall Stephenson. 
     AT&T and DirectTV said, they would pursue the creation of an Internet-delivered video service to complement U-Verse and DirectTV.  Earlier this year AT&T formed a venture with well-regarded media executive Peter Chernin, to invest more than $500 million in an online video service.  There has been some speculation that AT&T would end its small video service U-Verse if it acquired DirectTV, but Stephenson says that would not be the case.  Some analysts are not convinced the two companies will make a good relationship.  AT&T's take-over of DirectTV is just the latest attempt at consolidation in a marketplace where consumers are already saddled with poor service and price hikes, says Delara Derekhshani, policy counsel for the Consumers Union.  DirectTV Chief Executive Mike White added, the combination is a "significant win for consumers" because the combined company will be able to "deliver a competitive alternative to the cable bundle."  According to the L.A. Times, on a conference call with reporters, AT&T's Stephenson said that although he expected a thorough review from the Federal Communications Commission and Department of Justice, he didn't anticipate major hurdles.  Both AT&T and DirectTV say necessary approvals will take about a year.  Under terms of the deal, AT&T is paying $95 per share for DirectTV in cash and stock.  Of that, $66.50 will be in the form of AT&T shared and the remaining $28.50 will be in cash. See also,www.att.com.