DirecTV in Talks with Goldman Sachs for Potential AT&T Deal (Report)
DirecTV is reportedly working with advisers from the Goldman Sachs Group on potentially combining with AT&T, after the satellite TV firm was approached about an acquisition.
The Wall Street Journal reports that the talks are a sign that the acquisition is being seriously considered, which would create a pay-television giant comparable to the size of Comcast Corp. if it completes its pending acquisition of Time Warner Cable.
AT&T serves 5.7 million TV customers, and DirecTV serves 20 million. Combined they would have roughly 26 million customers. Comcast, along with Time Warner Cable, serves 30 million customers.
A potential deal is estimated to be valued at $40 billion, the current market capitalization of DirecTV. AT&T's overture reportedly came at some point after Comcast unveiled its deal to acquire Time Warner Cable in February.
DirecTV and AT&T declined to comment on the matter to The Hollywood Reporter.