AT&T In Talks To Buy DirecTV: Reports

(RTTNews) - AT&T Inc. (T) is in talks to buy satellite-TV company DirecTV (DTV) in a cash-and-stock deal that could close in two weeks time, according to reports. Shares of DirectTV rose 6 percent on the news reports, in the after-hours trading.

AT&T will pay about $100 a share or about $50 billion for El Segundo, California-based DirecTV, according to a Bloomberg report, citing people familiar with the matter. As per discussions, DirecTV will continue to run the company but as a unit of AT&T and DirecTV Chief Executive Officer Mike White to retire after 2015.

The news was first reported by Wall Street Journal, which reported that a deal between both the companies is expected to be made as early as two weeks.

DirecTV has reportedly hired Goldman Sachs (GS) to advise it on the deal. 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)

DTV closed Monday's trading at $87.16, down $0.85 or 0.97%, on the New York Stock Exchange. The stock, however, gained $5.42 or 6.22%, in the after-hours trade.

T closed Monday's trade at $36.57, up $0.13 or 0.36%, on the NYSE. The stock further gained $0.08 or 0.22%, in the after-hours trade.