AT&T's DirecTV Spinoff Wins Points for Strategy, but Not for Financial Impact [telecom]

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By Nicholas Jasinski

AT&T's complex transaction to shed DirecTV and its other pay-TV businesses encountered generally positive reactions on Wall Street for its strategic intent, but not for its potential financial impact.

Some analysts see the transaction as the first step toward a second deal--presumably a merger with satellite competitor Dish Network. The negative aspect is that it will weigh on AT&T's cash flows and earnings in the near-term, possibly heaping additional pressure on the company's lofty dividend.