T, DTV: AT&T Rumors Swirl Over $40B DirecTV Merger

Wall Street Journal cites people close to the deal

   

AT&T (T) is in talks with DirecTV (DTV) to purchase the satellite-TV operator, and the company is reportedly open to the deal.

DirecTV, DTV, DTV stockThe Wall Street Journal first reported the news, citing unnamed sources close to the discussions.

DirecTV’s market value is some $40 billion, with the deal potentially being even larger.

Via USA Today:

If the two sides ever come to an agreement, it would be one of the largest — if not the largest — pay-TV industry acquisitions, possibly even surpassing Comcast’s deal to buy Time Warner Cable for $45 billion.

DirecTV, based in El Segundo, Calif., had $8.6 billion in revenue last year and provides satellite-TV service to about 20 million subscribers in the U.S. and 17 million in Latin America.

Dish Network reportedly was previously interested in a merger with DirecTV, according to news reports in March.

DTV stock is up 4% today.


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/t-dtv-att-rumors-directv-merger/.

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