Telecommunication companies AT&t and KMM are set to merge to form the nation’s second-largest telecommunications company.
The announcement is expected Monday, as the U.S. Federal Communications Commission approves the deal.
KMM, a division of AT&ts parent company Time Warner Inc., has been in the works for years as a result of the merger of Verizon Communications Inc. and DirecTV Inc. AT&ters efforts to acquire Time Warner was stalled in the face of FCC scrutiny.
AT’s merger would bring together AT&Ts largest telecommunications business, the company says, with the largest video streaming provider in the country.
AT &ts stock is up nearly 12% since the announcement.
KMM, meanwhile, has been struggling to keep pace with competitors as it tries to make a name for itself in the broadband business.
Kmm is also competing with incumbent providers such as Comcast Corp. and Time Warner Cable Corp. In the telecom industry, the consolidation of two large players will mean greater competition.
A merger between AT&TS and Kmm would give AT& T more control over its cable, phone and Internet services.
Kamaal Communications Inc., which also is part of the merged entity, already offers customers access to its video and Internet offerings.
AT&T also would gain a dominant presence in the home Internet market.
Comcast Corp., which is part-owned by Comcast Corp, is in the process of buying NBCUniversal.
K&P Communications, the parent of a popular television service, has recently started offering video-on-demand services.
AT and K&P are already working together on mobile devices.
AT is already the dominant U.N. wireless carrier, while K&p is the leader in the U,S.
AT will also be able to buy Time Warner if the deal goes through.
ATs $85 billion acquisition of Direcision was approved by the FCC in October.
AT shares are up nearly 8% since then.
KAMP’s CEO, Jeff Rosenblum, said in an interview with the Associated Press last week that the merger is part “of a much larger, more comprehensive plan.”