"The problem is valuation," he wrote. "DirecTV's subscriber base is declining at the astounding rate of 18 percent year-over-year. And earnings before interest, taxes, depreciation and amortization (EBITDA) is, similarly, falling in the high teens as of last quarter. … Even merged with Dish, pro forma subscriber losses for the two combined would be running at 15 percent per year." The analyst concluded that "it's all but impossible to lever a business shrinking that quickly," while an exit from the investment via an IPO or sale to someone else down the road can't be ensured. "The only way for a potential buyer to meet a reasonable return hurdle in that scenario would be to get in at a very low entry multiple," concluded Moffett. "That leaves a rather small needle for AT&T to thread." Activist investor Elliott Management criticized AT&T management in 2019 for the timing of its DirecTV takeover. "The pay TV ecosystem has been under immense pressure since the deal closed," it said.