The two companies have been in on-off discussions for some time, but talks have progressed and a deal could now just be weeks away say US reports.
DirecTV has a market value of $44.5 billion but AT&T is proposing a cash and stock bid of between $92 and $95 per share, implying a value of a almost $50 billion. The structure of the combined company’s management is still under discussion.
The parties have previously come close to agreeing terms for negotiations to break down. Any deal would also likely face a lengthy battle to convince regulators to allow further consolidation in the US pay-TV market.
There had also been long speculation about a Dish and DirecTV merger.