A series of major mergers was supposed to transform AT&T from a stodgy old phone company into a slick online video and advertising juggernaut. Instead, customers are headed for the exits as AT&T hikes prices in a bid to pay down the company’s soaring merger debt
AT&T’s $67 billion acquisition of satellite television provider DirecTV in 2015 not only eliminated a competitor, the combined weight of the two companies gave AT&T greater leverage in programming negotiations. Last year’s $86 billion acquisition of Time Warner gave AT&T ownership of essential, must have programming like HBO, providing an additional competitive advantage.
