WATCH: More market update videos on TheStreet TV | More videos from Brittany Umar
NEW YORK (TheStreet) -- AT&T has approached DirecTV about possibly acquiring the company, according to a report by the Wall Street Journal, which estimated that a deal would likely be worth at least $40 billion.
(T) has approached DirecTV
(DTV) about possibly acquiring the company, according to a report by The Wall Street Journal.
reported that DirecTV would be "open to a deal," which the newspaper said would likely be worth at least $40 billion, DirecTV's current market capitalization.
DirecTV is the largest satellite-TV operator in the U.S. AT&T already has a partnership with the company, selling its satellite TV service in states where AT&T offers broadband.
The report comes after rumors surfaced in March that Dish Network
was interested in a potential merger with DirecTV. The pay-TV industry in the U.S. has been going through consolidation. Comcast
agreed to acquire Time Warner Cable
this year for $45 billion, and just this week agreed to a deal with Charter Communications
in an effort to win regulatory approval for the Time Warner acquisition.
Shares of DirecTV were climbing about 6% on the news. In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts