(Changes sources, adds details on DirecTV actions, company's
outlook on possible deal)
By Soyoung Kim and Ronald Grover
NEW YORK May 7 DirecTV is working with
advisers including Goldman Sachs Group to evaluate a
possible combination with AT&T Inc, following a recent
takeover approach from the mobile services provider, according
to people familiar with the matter.
DirecTV has enlisted advisers as the satellite TV company
and its board consider whether to engage in serious discussions
with the telecoms giant, one of the people said on Wednesday.
The exact status of the talks could not be learned.
While DirecTV took AT&T's overture serious enough to discuss
it at board meetings, it also thinks that AT&T could be more
interested in buying another pay TV operator Dish Network Corp
than itself, the person added.
Unlike DirecTV, which does not own wireless spectrum, Dish
has amassed billions in wireless airwaves over the past few
years under billionaire chairman Charlie Ergen.
All the people asked not to be named because they were not
authorized to speak with the media.
Representatives for DirecTV and AT&T declined to comment,
while Goldman Sachs was not immediately available for comment.
The Wall Street Journal reported earlier DirecTV was working
with Goldman Sachs on a potential deal.
A combination of AT&T and DirecTV would create a pay
television giant close in size to where Comcast Corp
will be if it completes its pending acquisition of Time Warner
AT&T has a market value of around $185 billion, compared to
DirecTV's $45 billion.
(Reporting by Soyoung Kim in New York and Ron Grover in Los
Angeles, additional reporting by Liana Baker; Editing by Steve
Orlofsky and Andrew Hay)