Over the weekend, we learned of a proposed deal involving AT&T and DirecTV. While many assumed that the deal would be pushed through and DirecTV would be purchased by AT&T as the initial report had stated, that may not be the case.
As it turns out the NFL may hold the biggest key to the deal.
According to Jon Erlichman of Bloomberg.com, if DirecTV does not renew their deal for “NFL Sunday Ticket” then the entire deal could fall apart.
A clause in the proposed contract reads:
"“The parties also have agreed that in the event that DIRECTV’s agreement for the ‘NFL Sunday Ticket’ service is not renewed substantially on the terms discussed between the parties, the Company may elect not to consummate the Merger[.]“"
It is certainly something interesting to note.
If a competitor isn’t happy with the proposed purchase of DirecTV from AT&T, then they could just throw down a large amount of money to acquire the “NFL Sunday Ticket” and potentially bring the AT&T-DirecTV deal to a screeching halt.
Get your popcorn ready.
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