Telecommunications giant AT&T and DirecTV announced Sunday that the two companies had reached a definitive agreement which would see AT&T acquiring the broadcast service provider.
AT&T is buying DirecTV for about $48.5 billion, reports The New York Times. But the Times reports that the deal, including debt, is valued at about $67 billion.
Under the terms of the deal, AT&T will pay about $95 a share in stock and cash. That's a roughly 10 percent premium to DirecTV's closing share price on Friday and about 30 percent higher than where the company's shares were trading before rumors of a deal began to emerge.
"This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens," said AT&T Chairman and CEO Randall Stephenson in a statement.
The acquisition by AT&T will increase its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February. That deal is still being reviewed by regulators.