The two companies have hammered out leadership details of the combined company but not financial particulars, sources tell the Wall Street Journal.
The combination continues the consolidation in the chips business, as firms bulk up to better supply components to more connected gadgets.
The bulking up of a second giant would shake up the cable industry, which is struggling to keep pay-TV subscribers as all-digital rivals emerge.
Comcast's $45.2 billion merger with Time Warner Cable is officially dead, and the companies may have the fiery Net neutrality debate that raged this past year to blame.
Scrutiny from regulators proves too much for a proposed $45 billion deal to combine the two biggest US cable operators. However, the merger frenzy may start back up, thanks to Charter Communications.
Commentary: A 2012 law forbids the states' Public Utility Commission from regulating Internet services. But the pending merger of ISPs could allow the opportunity to do just that.
The merger of Kuadi Dache and Didi Dache is set to dominate smartphone-based transport services in the country.
The e-tail giant will be separating its online payment and commerce companies in mid July. Shares will be split, tax-free, right down the middle for current shareholders.
Some investors are less than pleased with the turnaround plan of Yahoo CEO Marissa Mayer and want AOL CEO Tim Armstrong to consider a merger, says Reuters.
The deal also expands the partnership to include Sunday Ticket live on mobile devices, likely to be a key promoted feature for AT&T.