- POSTED: 13 May 2014 18:47
AT&T is prepared to acquire satellite TV provider DirecTV in a deal that values it at nearly US$50 billion, the Wall Street Journal said Tuesday.
NEW YORK: AT&T is prepared to acquire satellite TV provider DirecTV in a deal that values it at nearly US$50 billion, the Wall Street Journal said Tuesday.
Talks are at an advanced stage and a deal could be announced in two weeks or even earlier, the Journal said, quoting people close to the deal.
The US business daily had reported early this month a deal was afoot but put the price tag then at around US$40 billion.
But one source noted the two companies have tried in the past to reach a deal but stumbled over the value of DirectTV.
DirecTV shares closed Monday at US$87.16 on Wall Street. An offer at US$95 dollars per share would value the company at nearly US$48 billion, the paper said.
The companies are discussing a share price in the low to mid-90s, the Journal quoted one source as saying.
The deal would give AT&T a national dimension in the pay TV industry.
The broader telecom and pay TV industries have been shaken up by Comcast's agreement to acquire Time Warner Cable for US$45 billion. These are the two largest US cable operators.