AT&T Has Approached DirecTV about a Possible Acquisition

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.