Report: AT&T Weighs Possible Purchase of DirecTV

By Supriya Kurane

AT&T (T) has approached DirecTV (DTV) about a possible acquisition of the satellite TV company, the Wall Street Journal reported, citing people familiar with the situation.

A deal would likely be worth at least $40 billion, DirecTV's current market capitalization, the newspaper said.

A combination of AT&T and DirecTV would create a pay television giant close in size to where Comcast (CMCSA) will be if it completes its pending acquisition of Time Warner Cable (TWC), the Journal said.

Representatives for AT&T weren't immediately available for comment outside of regular U.S. business hours.

DirecTV spokesman Robert Mercer said the company doesn't comment on speculation.

Comcast this week agreed to a three-way deal with Charter Communications (CHTR) as part of Comcast's efforts to win regulatory approvals for its proposed $45 billion purchase of Time Warner Cable.