NEW YORK (TheStreet) -- Shares of DirecTV (DTV) are higher by 3.89% to $90.59 in pre-market trade as AT&T (T) is in active talks to buy the satellite TV provider and may complete a deal in the next few weeks that could be worth close to $50 billion, source say, Reuters reports.
AT&T is said to be discussing an offer in the low- to mid-$90s per share for DirecTV, sources added, compared with the company's closing price yesterday of $87.16.
The deal price has yet to be finalized and terms could still change, sources told Reuters, adding that discussions are continuing.
TheStreet Ratings team rates DIRECTV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIRECTV (DTV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: