US telecoms firm AT&T in $48.5bn deal to buy DirecTV

US telecommunications firm AT&T will acquire satellite television provider DirecTV in a cash and stock deal valued at $48.5bn (£29bn).

If approved, the deal gives AT&T access to DirecTV's 40 million digital TV customers in the US and Latin America.

The deal would also give AT&T a new source of revenue beyond its traditional telecommunications business.

The board of directors at both companies have approved the merger.

But the deal is subject to approval by DirecTV shareholders, and needs to be reviewed by US regulators, including the Federal Communications Commission and the Department of Justice.

Both companies are hopeful the transaction will complete in about 12 months.

AT&T chairman and chief executive Randall Stephenson said in a statement: "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 - mobile devices, TVs, laptops, cars and even airplanes."