In a colossal deal that further illuminates the consolidation of the telecommunications industry, AT&T announced last night that it has agreed to purchase DirecTV in a transaction totaling $48.5 billion.

The acquisition combines the two companies’ “complementary strengths” -- DirecTV’s satellite leadership and AT&T’s vast wireless reach -- according to a press release, especially as viewers are increasingly consuming video content on their mobile devices.

The deal will also allow AT&T to bundle DirecTV with the mobile and broadband services it already offers to consumers, as well as for DirecTV to offer Internet to its 20 million customers for the first time.

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“U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace,” stated DirecTV’s president and CEO, Mike White.

DirecTV will continue to be based in El Segundo, CA.

The deal comes on the heels of other players within the telecommunications industry seeking to band together and scale up. While the $45.2 billion Comcast and Time Warner Cable merger, announced in February, is still subject to regulatory approval, Sprint has also expressed its desire to purchase T-Mobile.

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