AT&T Tower

There is much talk these days about mega deals in the telecom, satellite TV and cable TV market. Sprint is after T-Mobile, Comcast wants Time Warner Cable and now it is being reported that AT&T is after DirecTV. The second largest mobile carrier in the U.S. is reportedly considering a $50 billion bid for DirecTV, essentially a low to mid-$90s per share offer for the company that closed at $87.16 yesterday.

News of AT&T’s interest in the company first emerged at the very start of this month. Citing two people familiar with the matter Reuters reports that this deal is far from being finalized and that its likely for the terms to be changed as discussions are ongoing.

Several crucial details are yet to be worked out, like a break-up fee that AT&T would have to pay DirecTV if the deal doesn’t go through and a potential position for DirecTV CEO Mike White.

Earlier reports have suggested that AT&T might even be willing to pay as much as $100 per share for the company. DirecTV is expected to stick around as a unit of AT&T and its possible that the existing management team will continue to run day to day operations. Market analysts believe that the deal makes sense, with some even predicting that an announcement might be made within two weeks.

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