AT&T Inc. has approached DirecTV <DTV.O> about a possible acquisition of the satellite TV company, the Wall Street Journal reported, citing people familiar with the situation.
A deal would likely be worth at least $40-billion, DirecTV’s current market capitalization, the newspaper said.
A combination of AT&T and DirecTV would create a pay television giant close in size to where Comcast Corp <CMCSA.O> will be if it completes its pending acquisition of Time Warner Cable Inc <TWC.N>, the Journal said.
Representatives for AT&T were not immediately available for comment outside of regular U.S. business hours.
DirecTV spokesman Robert Mercer said the company does not comment on speculation.
Comcast Corp this week agreed to a three-way deal with Charter Communications Inc <CHTR.O> as part of Comcast’s efforts to win regulatory approvals for its proposed $45-billion purchase of Time Warner Cable.
