According to an industry source AT&T along with support from Microsoft will announce at CES that they are buying DIRECTV.  I have not heard of an amount yet.  I am actively trying to confirm.

Based upon a reliable industry source, AT&T will purchase DIRECTV with support from Microsoft.  Microsoft would be contributing money to secure the rights for their technology to power the backend of AT&T DIRECTV.

This past year AT&T has been working with DIRECTV in a partnership since dumping Dish in 2008.   That deal between AT&T AND DIRECTV started in 2009 as originally a hedged for it’s own its’ own pay television service, U-Verse.  DIRECTV has over 19 million subscribers in the US.

U-Verse has been gaining traction and is part of all the AT&T service pitches when you go to their stores.  U-Verse has been very aggressive again Comcast.  I recently got the hard sell on U-Verse when I went in to buy my wife a iPhone just last month.

AT&T has been having a hard time getting uptake on the U-Verse so going with DirectTV makes sense to augment their wireline business with a  satellite service.

For DIRECTV they have done great with their HD offering and premium channels like NFL Sunday Ticket.  I’m not sure if AT&T buyout is good for DirectTV users.

However, a new AT&T and DIRECTV combination pushed AT&T into even more homes. Not sure how this transaction will impact DirectTV’s reseller relationship with Verizon and other telcos.

I contacted AT&T for this post. An AT&T spokesperson stated that “AT&T does not comment on rumors or speculation.”