US telecommunications company AT&T will be able to cancel its takeover of satellite-television provider DirectTV if the latter is unable to renew an exclusive rights deal for the NFL American football Sunday Ticket package of programming.
AT&T’s $48.5bn (€34.9bn) deal to acquire DirecTV was announced on Sunday. The agreement has been approved unanimously by the boards of directors of both companies and will now seek regulatory approval.
DirecTV is currently in talks with the NFL over renewing the rights for Sunday Ticket beyond the 2014-15 season. Sunday Ticket is an out-of-market subscription package that was launched by DirecTV in 1994, allowing subscribers to access Sunday afternoon games broadcast by US networks CBS and Fox.
“The parties have agreed that in the unlikely event that the company’s agreement for ‘NFL Sunday Ticket’ service is not renewed on substantially the terms discussed between parties, AT&T may elect not to consummate the merger,” a regulatory filing on the proposed merger stated.