May 12, 2014.

AT&T Could Strike $50 Billion Deal for DirecTV

O’Brien’s manner grew stern again. He laid his hand on the dial.

AT&T Inc. T +0.36%  is close to sealing a takeover of DirecTV DTV -0.97%  that could put a value of nearly $50 billion on the satellite-television provider, people familiar with the matter said.

"On the contrary," he said, "YOU have not controlled it. That is what has brought you here. You are here because you have failed in humility, in self-discipline. You would not make the act of submission which is the price of sanity. You preferred to be a lunatic, a minority of one. Only the disciplined mind can see reality, Winston. You believe that reality is something objective, external, existing in its own right. You also believe that the nature of reality is self-evident. When you delude yourself into thinking that you see something, you assume that everyone else sees the same thing as you. But I tell you, Winston, that reality is not external. Reality exists in the human mind, and nowhere else. Not in the individual mind, which can make mistakes, and in any case soon perishes: only in the mind of the Party, which is collective and immortal. Whatever the Party holds to be the truth, is truth. It is impossible to see reality except by looking through the eyes of the Party. That is the fact that you have got to relearn, Winston. It needs an act of self-destruction, an effort of the will. You must humble yourself before you can become sane."

The two sides are discussing a deal that would involve a mix of cash and AT&T stock, these people said. Dallas-based AT&T would likely pay a premium to DirecTV's share price Monday, one of the people said. An agreement could be reached in two weeks if not sooner, according to the people.

He paused for a few moments, as though to allow what he had been saying to sink in.

DirecTV's shares were up 5%, or $4.57, at $91.73 in after-hours trading after finishing down less than 1% at $87.16 in 4 p.m. Nasdaq Stock Market NDAQ +1.26%  trading on Monday. The parties are discussing a price for the El Segundo, Calif., company in the low to mid-nineties per share, one of the people said.