May 13, 2014 03:19 PM EDT
AT&T in Talks to Purchase Satellite TV Provider DirecTV

AT&T is in talks to buy satellite TV provider DirectTV, and could finalize a deal by the end of May, according to Reuters.

The deal would be worth close to $50 billion, according to two people familiar with the matter, who spoke with Reuters.

The deal price has not been finalized yet and terms could still change. Discussions are continuing, as the second largest wireless operator is looking for an offer in the low to mid-$90ss per share for DirecTV, compared to a closing price of $87.16 on May 12.

"A bid at around $95 per share would value DirecTV at more than $48 billion based on its shares outstanding," said Reuters in a report this week.

Both DirecTV and AT&T have declined to comment about the deal.

AT&T was supposedly willing to pay around $100 per share for DirectTV, according to Bloomberg News.

"This is not the first time that AT&T and DirecTV have danced around the fire and thought if they could give it a go," said ReconAnalytics analyst Roger Entner, according to Reuters.

The Wall-Street Journal said a deal between the two companies could take place within the next two weeks.

DirecTV shares increased 6 percent to $92.50 in extended trading on May 12. They're working with advisers like Goldman Sachs Group on the deal.

"They both looked at each other for at least 10 years," said Entner. "Both kind of came to the conclusion that it was in the right environment. It makes a lot of sense to get together, but there was never the right regulatory environment for it."

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?

 PREVIOUS POST
NEXT POST 

EDITOR'S PICK    

Hyundai to Invest $16.1 Billion for EV Business; Sets Annual Sales Goal of 1.87M Electric Cars by 2030

World's Most Expensive and Most Heavily-optioned Porsche 928 GTS is Coming Home to the U.S.

Major Boost as Tesla Giga Berlin Facility in Final Phase of Approval Process; Delivery Event Set This Month

Audi Looking for e-tron Electric Vehicles to Spur Car Brand's Growth in India in 2022

Toyota Offers Free EV Charging to Owners of 2023 bZ4X After Partnership Agreement with EVgo

2022 Suzuki Baleno Finally Unveiled in India: What are the Specs and Features of this City Car?