By Supriya Kurane
AT&T (T) has approached DirecTV (DTV) 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 (CMCSA) will be if it completes its pending acquisition of Time Warner Cable (TWC), the Journal said.
Representatives for AT&T weren't immediately available for comment outside of regular U.S. business hours.
DirecTV spokesman Robert Mercer said the company doesn't comment on speculation.
Comcast this week agreed to a three-way deal with Charter Communications (CHTR) as part of Comcast's efforts to win regulatory approvals for its proposed $45 billion purchase of Time Warner Cable.
Report: AT&T Weighs Possible Purchase of DirecTV
More from Reuters
•Apple Suppliers Gear Up to Build Larger Screen iPhones
•Latest Batch of Earnings Will Test Economy's Strength
•Hasbro's Sales Climb but Profit Slips