The blockbuster deal between AT&T and DirecTV proves one thing: that the National Football League Sunday Ticket package is the crown jewel in the satellite-TV provider's programming package.
DirecTV's relationship with the NFL and maintaining the Sunday Ticket package is critical enough to the$48.5 billion merger with AT&T that it is deemed a deal breaker. If DirecTV doesn't renew its exclusive programming agreement with the NFL, AT&T has the option to walk away.
AT&T's buyout, which is expected to close within 12 months, creates a powerhouse for services in the home. It allows AT&T to pair its own wireless network with DirecTV's nationwide satellite TV service. The deal comes as AT&T faces slowing growth in its core wireless business and intense competition for its wireline service, a factor also at play in the proposed $45.2 billion merger between rival Comcast and Time Warner Cable.
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