AT&T, Time Warner talk merger

AT&T Inc. is nearing an agreement to buy Time Warner Inc., a deal that would set a milestone in the converging media and telecommunications sectors, and unleash a far-reaching reordering of the industry as rivals are spurred to attempt their own deals.

A deal, which could happen as early as this weekend, would unite AT&T’s wireless, broadband and satellite TV brands with Time Warner’s entertainment empire, which includes cable networks such as TNT, TBS, CNN, the prized HBO channel, and the Warner Bros. film and TV studio.

Talks toward a cash-and-stock purchase have come together quickly and could stall or fall through, said people familiar with the matter. Time Warner is seeking a deal that values it north of $100 a share, or about $80 billion, one of the people said.

It is possible other bidders could emerge, including traditional media conglomerates or technology companies. Apple Inc. approached Time Warner about a merger a few months ago and while those talks are no longer active, Apple continues to monitor the situation, a person familiar with the situation said. If a Time Warner sale occurs that could encourage other telecom and media companies to pursue their own combinations.

An AT&T-Time Warner merger would be the most ambitious marriage of content and distribution since Comcast Corp.’s 2011 purchase of NBCUniversal and would create a behemoth that rivals that cable giant. Its value potentially would stand as the biggest media deal in recent years: Time Warner has a market capitalization of $72 billion and AT&T’s is $226 billion.