AT&T in talks to buy Time Warner

AT&T is in serious talks to acquire Time Warner in a deal that could be finalized as early as Saturday, sources confirmed to The Hill. 

The deal would create a huge conglomerate that would make well-known Time Warner properties Warner Bros., CNN, CNN International, HLN, TNT, TBS and HBO a part of AT&T’s multinational conglomerate. 

{mosads}Like other deals of this size, such as Comcast’s acquisition of NBCUniversal, an AT&T-Time Warner deal would be subject to regulatory scrutiny that could take months or years to complete. 

In the case of AT&T and Time Warner, regulators would specifically be looking at the potential that one company would have substantial control over both programming and the distribution of it. 

The combination of AT&T and Time Warner would create a tough competitor to Comcast, which in 2009 purchased NBCUniversal.

In both cases, the deals would place content in the control of distribution companies.

And it would come as more and more television consumers are engaging in “cord-cutting,” or canceling expensive cable offerings in favor of streaming content. 

That could make Time Warner valuable to AT&T. HBO’s streaming service, HBO Now, is currently the top video streaming app by revenue, according to app store analytics firm App Annie. 

In July 2015, AT&T acquired DirecTV for $48.5 billion. The satellite provider has more than 20 million customers across the country and exclusive rights to the lucrative NFL Sunday Ticket package. 

The news of a potential blockbuster deal sent Time Warner shares soaring up more than 12 percent on Friday to more than $90 each, a 15-year high. Shares of AT&T are down more than 2 percent in midday trading, to $37.50. 

AT&T and Time Warner could not be reached for comment.

Comcast’s purchase of NBCUniversal took years to conclude, beginning in December 2009 and not getting formal federal approval until January 2011.