WSJ: AT&T/DirecTV deal could be announced in two weeks

|About: AT&T Inc. (T)|By:, SA News Editor

The WSJ reports AT&T (T) and DirecTV (DTV) are discussing a cash/stock deal that could be announced in as soon as two weeks.

The paper adds adds AT&T is likely to pay a premium to Dish's current stock price.

Though a merger would be costly - DirecTV currently goes for over 17x 2015E EPS after factoring over $15B in net debt - AT&T investors have been signaling they aren't bothered by a deal that stands to increase AT&T's bundling opportunities, while also lower the telco's exposure to both its slumping wireline voice ops and a mobile business that's beginning to see tougher price competition.

DTV +1.5% AH

Last week: DirecTV reportedly talking with advisers about AT&T deal