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

by Burke Speaker | May 1, 2014 4:10 pm

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

AT&T (T[1]) is in talks with DirecTV (DTV[2]) 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 Merger[3]The 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:[4]

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.

Endnotes:
  1. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  2. DTV: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTV
  3. [Image]: http://investorplace.com/wp-content/uploads/2010/10/directv_logo.jpg
  4. Via USA Today:: http://www.usatoday.com/story/money/business/2014/05/01/att-directv-talks/8550777/

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