AT&T Said To Be Interested in Potential $40 Billion DirecTV Acquisition


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.

VIDEO TRANSCRIPT:

AT&T (T) has approached DirecTV (DTV) about possibly acquiring the company, according to a report by The Wall Street Journal.

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.

More from Stocks

How Did Caterpillar Get Its Name?

How Did Caterpillar Get Its Name?

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

CHART: Here's How Much Apple Stock Has Lost in Value in the Last Five Days

CHART: Here's How Much Apple Stock Has Lost in Value in the Last Five Days

Podcast: Coca-Cola CFO Kathy Waller Talks About Future of Women in Business

Podcast: Coca-Cola CFO Kathy Waller Talks About Future of Women in Business

Wait, Google Was Almost Called What?

Wait, Google Was Almost Called What?