DirecTV shares spiked 8% ($6.51 per share) to $88.25 each Wednesday after a report in The Wall Street Journal said the satellite giant was working with advisers concerning a possible merger with AT&T.
According to the Journal, DirecTV is working with advisers including Goldman Sachs to evaluate a possible combination with AT&T. The Journalfirst reported on May 1 that AT&T had approached DirecTV about a possible combination, but said any talks were in early stages. The paper speculated that the union would be worth about $40 billion.
The news that the satellite giant is working with advisers comes a day after chairman and CEO Mike White issued a non-denial denial of past M&A speculation. On a conference call with analysts to discuss its first quarter results Tuesday, White noted that the past reports involving DirecTV were “not based on official sources of information and we don’t feel it is productive to speculate on alternative business combinations which may or may not occur.”
DirecTV declined comment on the latest report.
