Another Mega Merger: AT&T Reportedly Eyeing $40 Billion Purchase of DirecTVA new report alleges telecommunications giant AT&T has approached DirecTV about a merger that could be worth as much as $40 billion.

ByGeoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

While Comcast's $45.2 billion purchase of Time Warner Cablehas yet to be approved by regulators, a competing television goliath could already be in the making.

Telecommunications giant AT&T has allegedly approached satellite television leader DirecTV about a merger that could be worth as much as $40 billion, according toa report inThe Wall Street Journal

An amalgamation of DirecTV's 20 million customers with AT&T's 5.7 million landline-based television subscribers would closely rival the nearly 30 million combined viewers of Comcast and TWC.

An AT&T spokesman declined to comment; DirecTV could not be reached for comment.

Related:Apple and Comcast in Talks to Create Priority TV Streaming Service

News of a potential purchase comes as the satellitetelevisionindustry has reached relative maturity in American homes, theJournalreports, and also does not offer competitive internet access in the way that cable companies do.

From AT&T's perspective, the company sees video delivery as key to its future, and has been in talks with both DirecTV and competitor Dish Network in recent years, reports theJournal。如果合并是通过,那么美国电话电报公司(AT&T)be able to bundle both wireless and television services, and also deliver video in a new way to itsmobilecustomers.

While yet another merger in the pay television realm would likely face intensifying scrutiny by regulators, according to theJournal, it might also be approved "because offering video or voice service alone is viewed as a dying business and the combined company would be in a position to compete with Comcast."

Related:The Weather Channel Gets Unseasonably Dumped by DirecTV Amid Carriage Disputes

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Editor's Pick

Related Topics

Business News

'No Question, We Probably Went Too Far': Delta Airlines CEO Backtracks on Sweeping Changes to SkyMiles Accounts, Sky Club Access

The unpopular changes set to roll out in 2025 were announced earlier this month.

Business News

Jeff Bezos Lost $5 Billion in 1 Day After Amazon FTC Lawsuit News

The lawsuit accuses Amazon of engaging in anticompetitive practices, which has led to a sharp decline in the company's stock value and a substantial reduction in Bezos's net worth.

Business News

凯蒂·佩里是Fighting the Founder of 1-800-Flowers for a $15 Million California Mansion He Doesn't Want to Sell Her

The eight-bedroom, 11-bathroom estate sits on nearly nine acres in the Santa Ynez foothills in Montecito.

Business News

Why Barbara Corcoran Chose Her Business Partner After Looking Inside Her Purse: 'Best Hire I Ever Made'

Esther Kaplan served as President of the Corcoran Group until 2000.

Growing a Business

So Your Company Is Talking About Transformation — But Is It Ready? Here's How To Tell.

Transformation is one of a company's many choices — but if a team opts to do it, they have to be sure the business is ready, willing and able.