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
•Market Wrap: Wall Street Ends Lower as Weak Oil Weighs
•Employment Costs Post Smallest Gain on Record in 2Q
•Market Wrap: Stocks End Flat; LinkedIn Jumps After the Bell