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.
The 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 (DISH) was interested in a potential merger with DirecTV. The pay-TV industry in the U.S. has been going through consolidation. Comcast (CMCSA) agreed to acquire Time Warner Cable (TWX) this year for $45 billion, and just this week agreed to a deal with Charter Communications (CHTR) 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.