AT&T Approaches DirecTV For Possible Combination: WSJ

(RTTNews) - Telecom giant AT&T Corp. (T) has approached DirecTV (DTV) about a possible acquisition of the digital television entertainment provider, The Wall Street Journal reported, quoting people familiar with the situation. A deal is likely worth at least $40 billion.

DirecTV is the second biggest pay TV operator. It serves about 20 million customers. AT&T's landline-based TV business serves about 5.7 million customers.

The combination is expected to create a pay television giant close in size to Comcast Corp. (CMCSK, CMCSA) after its acquisition of Time Warner Cable (TWC).