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Motley Fool Money

Motley Fool Money: 05.23.2014

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 23 May 2014

⏱️ 39 minutes

🧾️ Download transcript

Summary

AT&T announces plans to buy DirecTV. AstraZeneca rebuffs Pfizer. And Urban Outfitters hits a 52-week low. Our analysts discuss those stories and share three stocks on their radar. Plus, corporate governance expert and film critic Nell Minow talks CEO pay and summer movies.

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Full Money.

0:19.0

It's a Motley Full Money radio show. I'm Chris L. Joining me in studio this week from Motley Full One, Jason Moser,

0:24.0

from Motley Full Income Investor, James Early, and for Million Dollar Portfolio, Ron Gross.

0:29.0

Good to see you, Jens.

0:30.0

Hey, you do.

0:31.0

It is our Memorial Day weekend special. We're taping a little early this week, but we've got headlines.

0:35.0

We will dip into the full mail bag and we'll talk CEO pay and get a summer movie preview from Nell Minow.

0:42.0

And as always, of course, we were giving an inside look at the stocks on our radar.

0:45.0

But we begin with the big deal of the week.

0:48.0

AT&T is buying direct TV for $49 billion. If approved by regulators, it would make AT&T the second largest pay TV service in America.

0:59.0

Help me out, Ron, because the buyout price for direct TV was $95 a share.

1:05.0

But the stock is trading in sort of the mid to low 80s. Why is this the stock not being bit up?

1:12.0

That says to me that maybe people think this ain't going to happen.

1:15.0

There's two things going on. One, there's some real concern about competitive issues.

1:19.0

Some antitrust issues. There are definitely some public interest groups that will probably lobby to not have this go through,

1:26.0

same as they're doing with Comcast Time Warner.

1:29.0

But the bigger thing, the more interesting thing, I think, is all about the NFL.

1:34.0

And AT&T really has the right to pull out of this deal if the direct TV NFL ticket deal doesn't get renewed.

1:42.0

And that's a big part of this transaction. And I think investors are waiting and seeing what will happen there.

1:49.0

I think it's likely that that gets renewed. I think they've used words like highly probable.

1:55.0

But it is an interesting provision in the deal that it can go away if NFL goes away.

...

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