The Frontier Communications’ $8 Billion merger with DirecTV is good news for customers
Frontier Communications has bought Directv for $8 billion, a company that owns and operates the majority of the video streaming and Internet service provider’s networks.
Frontier, which acquired Direcvt in 2013 for $5 billion, said in a statement that it’s “excited” about the merger.
It will “continue to leverage our robust network of channels and networks, which will enable us to better serve customers,” the statement read.
Direcntv, the company that has the largest footprint in the U.S., has a market share of about 17% in the United States, according to data from research firm Statista.
The deal was announced Thursday morning.
It’s the second time Frontier has acquired a cable provider in the last six months.
Frontier acquired Directv last year for $3.8 billion.
It has said it’s looking to build a larger footprint in its video streaming business.
The acquisition will allow Frontier to expand its streaming services to include Direcv’s video, Internet and phone services.
Frontier has also said it plans to build more than 4,000 high-speed fiber-optic networks, with the goal of connecting 10 million homes by 2019.
It says the deals with Directvy and Dish Network will help it grow its video, voice and internet business in areas such as mobile Internet, video games, and video content.
Frontier CEO Brian Roberts, a former Apple executive, said the acquisition was “a great first step for our industry.”
Frontier said Direcvy will become the “dominant voice, video and data provider” for Frontier’s customers, and Dish will be the “substantial voice and data service provider” that is “a critical component of our network.”
Dish Network CEO Jim Cicconi said the merger is “part of our broader strategy to accelerate the development of our digital footprint.”
He said the deal will provide for a “transformational future” for the company.
The combined company will be called Frontier Communications.