AT&T Has Approached DirecTV About Possible Acquisition, Says WSJ

(Reuters) - AT&T Inc (T.N) has approached DirecTV (DTV.O) 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 Corp (CMCSA.O) will be if it completes its pending acquisition of Time Warner Cable Inc (TWC.N), the Journal said. (r.reuters.com/qad98v)

Representatives for AT&T were not immediately available for comment outside of regular U.S. business hours.

DirecTV spokesman Robert Mercer said the company does not comment on speculation.

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