AT&T May Buy DirecTV (Report)

AT&T May Buy DirecTV (Report)

New company would rival Comcast in size

AT&T has approached DirecTV about possibly acquiring the satellite TV firm, The Wall Street Journal reported.

The new company would create a pay television empire that would rival Comcast Corp. in size, if Comcast completes its acquisition of Time Warner Cable. The Journal cited people familiar with the situation.

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Both AT&T and DirecTV declined to comment to TheWrap on Wednesday.

The deal could be valued at $40 billion, DirecTV's current value. Comcast is seeking to acquire Time Warner Cable for $45 billion, but needs government approval.

The Journal said DirecTV would be open to a merger with AT&T, citing a “person familiar with the situation.”

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Talks between the two companies have intensified since Comcast announced plans to buy Time Warner Cable, the Journal said. But the paper said talks may not be in the late stages yet.