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AT&T Approaches DirecTV About Possible Acquisition: Report

Is AT&T About To Take Over DirecTV?
Reuters
DirecTV logos are seen in North Andover, Mass. Thursday, Aug. 6, 2009. DirecTV Group Inc. said Thursday its second-quarter profit fell 11 percent, but its revenue climbed as the digital and satellite TV provider signed up new subscribers in the U.S. and Latin America. Net income slid to $407 million from $455 million in the same quarter last year. The decline in profit was primarily due to lower operating profit and increased net interest expense due to higher debt balances, DirecTV said. (AP Photo/Elise Amendola)
DirecTV logos are seen in North Andover, Mass. Thursday, Aug. 6, 2009. DirecTV Group Inc. said Thursday its second-quarter profit fell 11 percent, but its revenue climbed as the digital and satellite TV provider signed up new subscribers in the U.S. and Latin America. Net income slid to $407 million from $455 million in the same quarter last year. The decline in profit was primarily due to lower operating profit and increased net interest expense due to higher debt balances, DirecTV said. (AP Photo/Elise Amendola)

April 30 (Reuters) - AT&T Inc has approached DirecTV 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 will be if it completes its pending acquisition of Time Warner Cable Inc, the Journal said. (http://r.reuters.com/qad98v)

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 as part of Comcast's efforts to win regulatory approvals for its proposed $45 billion purchase of Time Warner Cable. (Reporting by Supriya Kurane in Bangalore; Editing by Edwina Gibbs)

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