Report: AT&T in talks to acquire DirecTV for $50 billion

AT&T is in “advanced talks” to purchase satellite television company DirecTV for about $100 per share, or $50 billion, according to Bloomberg.

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The deal to combine the two companies would make DirecTV a “unit” of AT&T and leave DirecTV management in charge, the report said, adding that DirecTV CEO Mike White plans to retire at the end of next year.

According to Bloomberg, the companies “are planning on a 12-month regulatory process.”

Earlier this month, The Wall Street Journal reported that AT&T had approached DirecTV about purchasing the company.

The report compared AT&T’s potential purchase of DirecTV, which would leave AT&T with a total of 26 million subscribers, to Comcast’s potential purchase of Time Warner Cable, which would leave Comcast with a total of 30 million subscribers.

The deal to combine Comcast and Time Warner Cable is currently being evaluated by the Department of Justice and the Federal Communications Commission (FCC).

“Comcast's Time Warner Cable deal faces tough regulatory scrutiny and a second pay-TV merger would likely intensify regulatory and political questions surrounding consolidation in the industry,” the report said.

One person familiar with the FCC’s thinking told The Wall Street Journal that a deal between AT&T and DirecTV “would have a solid chance at approval 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.”