Analysis: 'Strong possibility' of AT&T-DirecTV merger

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

Oppenheimer says there is a "strong possibility" AT&T (T) will pull the trigger on a $100 bid for DirecTV (DTV).

After crunching the numbers, the investment firm says a DirecTV integration would be accretive to AT&T's free cash flow per share by at least 7%.

Though there has been a lot of talk from analysts about AT&T being able to increase its average monthly revenue per user through a DirecTV purchase, others note the real value could be on the content negotiation side where a DTV-T combination yields considerable leverage.

DTV +0.3% premarket to $86.35.