at&t logo

*(Via Wall Street Journal) – AT&T has approached DirecTV about a possible acquisition of the satellite TV firm, say people familiar with the situation, the latest sign of a possible shakeup in the television industry.

A combination of AT&T with DirecTV would create a pay television giant close in size to where Comcast will be if it completes its pending acquisition of Time Warner Cable.

A deal would likely be worth at least $40 billion, DirecTV’s current market capitalization, a fraction of AT&T’s $185 billion market capitalization.

For MORE coverage, click over to WSJ.com (Subscription required)