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