AT&T may buy DirecTV for $50 billion

The deal, said to be expected soon, would lead to a substantial expansion of AT&T's TV services.

at-t-truck.jpg
CNET

AT&T could close a deal to buy DirecTV for roughly $50 billion in as little as two weeks, The Wall Street Journal reported Monday.

The purchase would allow AT&T to expand its television footprint in the US, an attractive move for the telecommunications company. Like its competitors, AT&T continues to compete with cable companies for customers who want bundled services for TV, broadband, wireless, and home phone. DirecTV is the No. 2 satellite TV provider, with 20 million subscribers. AT&T U-Verse TV, the company's digital TV service, has 5.7 million customers.

Both AT&T and DirecTV declined to comment.

The agreement would involve AT&T paying for DirecTV with both cash and stock, valuing the deal around $50 billion, unnamed sources told the Journal, which first reported rumors of a possible acquisition late last month.

AT&T reportedly approached DirecTV after Comcast announced its deal with Time Warner Cable in February. That merger, if approved, would result in a combined base of 30 million subscribers.

 

Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

HOT ON CNET

Delete your photos by mistake?

Whether you've deleted everything on your memory card or there's been a data corruption, here's a way to recover those photos.