An AT&T and DirectTV deal would likely be worth at least $40 billion. Getty Images
AT&T T +0.79% has approached DirecTV DTV +1.32% about a possible acquisition of the satellite TV firm, say people familiar with the situation, the latest sign of a possible shakeup in the television industry.
A combination of AT&T with satellite TV firm DirecTV would create a pay television giant close in size to where Comcast Corp. CMCSA +0.41% will be if it completes its pending acquisition of Time Warner Cable. TWC +0.09%