NEW YORK — AT&T’s purchase of DirecTV in 2015 has put the telecoms company on a new acquisition path focusing on media companies, according to people who know the plans. In the next three to five years, AT&T would seek deals to become a content producer, shifting its business model so that it owned some of the programming it distributed, said the people, who asked not to be identified discussing plans. The targets would include companies worth $2bn-$50bn, they said. Phone companies are trying to figure out their next steps for expansion as cellular growth flattens out and competition with cable providers remains intense. While its main rival Verizon Communications has bet big on mobile advertising, AT&T is focused on becoming a powerhouse in video programming. Having become the largest US pay-TV provider with the DirecTV deal, AT&T faces a new set of challenges: holding on to television subscribers in an era of cord-cutting as well as fighting cable networks’ attempts to raise price...
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