This morning reports are surfacing of more M&A in the media sector again. The Wall Street Journal is reporting that AT&T (T, quote) has approached DIRECTV (DTV, quote) concerning an acquisition.

This really not all that surprising with Comcast’s (CMCSA, quote) move to merge with Time Warner Cable (TWC, quote) making it one the largest pay tv companies. In fact Comcast had to revise the deal to three way deal to include Charter Communications (CHTR, quote) to gain regulatory approvals.

At current market capitalization, AT&T / DIRECTV deal would roughly be in the ball park of $40 billion putting it par to the Comcast / Time Warner’s $45 billion deal, assuming they can get regulatory approval.

At the time of writing neither company has confirmed the talks and reports are that DirecTV spokesman Robert Mercer told the Wall Street Journal his company does not comment on speculation.

Which makes me think since it’s not an outright denial of talks something is up (pure speculation of course), were there is smoke there is fire?

Looking at the landscape from a logical stand point we can speculate that industry players have to be getting nervous over the pending Comcast deal. DIRECTV is obvious choice if DIRECTV want to merge. Dish (DISH, quote) as we know is looking for merger.