The Time Warner building is pictured in New York, New York December 11, 2013. REUTERS/Eric Thayer/File Photo

(Reuters) - AT&T; Inc (T.N) reached a deal to buy media company Time Warner Inc TWX.N for more than $80 billion, The Wall Street Journal reported on Saturday.</s>AT&T has reached an agreement in principle to buy Time Warner for about $85 billion, sources said on Friday, paving the way for the biggest deal in the world this year. The agreement would give the telecom company control of the cable TV channels HBO and CNN, the film studio Warner Bros. and other coveted media assets.

The deal, which has been agreed upon in most of its terms and could be announced as early as Sunday, would be one of the largest in recent years in the sector as telecommunications companies look to combine content and distribution to capture customers who are replacing traditional pay-TV packages with more streamlined offerings and online delivery.

AT&T, which sells wireless phone and broadband services, has already made moves to turn itself into a media powerhouse, buying the satellite TV provider DirecTV last year for $48.5 billion.

It also in 2014 entered a joint venture, Otter Media, with the Chernin Group to invest in media businesses and has rolled out video streaming services.

AT&T will pay $110 per Time Warner share, or about $85 billion overall, sources said.

Time Warner’s shares rose almost 8 percent in regular trading, and a further 3.4 percent after hours, to $92.50, giving it a market value of about $73 billion. AT&T closed down 3 percent at $37.49.

Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros. film studio, producer of the “Batman” and “Harry Potter” film franchises. The company also owns a 10 percent stake in the video streaming site Hulu.

Time Warner Chief Executive Jeff Bewkes rejected an $80 billion offer from 21st Century Fox in 2014, but sources said on Friday that the former suitor had no plans to renew its bid.

The Wall Street Journal reported on Friday that Apple approached Time Warner a few months ago about a possible merger.

Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings or switch to watching online. And new mobile technology, including next-generation 5G networks, could make a content tie-up especially attractive for wireless providers.

“We think 5G mobile is coming, we think 5G mobile is an epic game-changer,” Rich Tullo, director of research at Albert Fried & Co., said in a note, adding that mobile providers would be in a position to disrupt traditional pay-TV services.

A previous Time Warner blockbuster deal, its 2000 merger with AOL, is now considered one of the most ill-advised corporate marriages on record.

Cowen and Co. analyst Doug Creutz questioned the strategy of buying content instead of licensing it.

“What does it get them that they can’t get by licensing Time Warner content and at a much cheaper price than buying the whole company?” Creutz asked, noting it is unclear what savings could be gained from “stapling distribution and content together. It’s been tried. It never works.”

AT&T would likely be able to win U.S. antitrust approval for the deal, some experts said, but it is unclear whether certain conditions would be needed to win that approval.

The U.S. Justice Department “will look at it but they won’t stop it,” said Darren Bush, who teaches antitrust issues at the University of Houston. Bush predicted regulators as a matter of course would make a second request for information, meaning the review would last several months.

Andre Barlow, an antitrust lawyer at the law firm Doyle, Barlow and Mazard, noted that the government may worry about whether other cable and internet companies would continue to have access to Time Warner content like HBO and CNN.

The media industry has been seen as ripe for consolidation. Several stocks rose on the news, including Netflix, which closed up about 3.4 percent, and Discovery Communications, which ended up 3.6 percent.</s>Time Warner's stock soared nearly 10% Friday on reports that telecom and media giant AT&T may make a takeover bid for the company. A deal would be the latest example of convergence in the media and tech world, and it could usher in another wave of consolidation in the sector.

The Wall Street Journal, citing anonymous sources, said that a deal could happen as soon as this weekend. (Time Warner is the parent company of CNN.)

Shares of AT&T were down 3% after the news broke.

AT&T declined to comment to CNNMoney, and Time Warner (TWX) did not immediately return requests for comment.

There was no indication how much AT&T was willing to pay for Time Warner. AT&T reportedly would use cash and its own stock to finance the deal. It is currently worth $230 billion, while Time Warner's market value is about $70 billion.

Larry Haverty, associate portfolio manager with The Gabelli Multimedia Trust (GGT) -- a fund that owns shares of both AT&T and Time Warner -- said he thinks it is "highly likely" the two companies will combine.

He adds that AT&T could wind up paying as much as $110 a share for Time Warner. That would be almost 25% higher than the stock's current price, and would value Time Warner at more than $85 billion.

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But any AT&T-Time Warner deal would be subject to a lengthy regulatory review process.

That's because an acquisition of Time Warner would cement AT&T (T, Tech30) as one of the country's dominant media companies, with significant control over both programming and the distribution of that programming.

AT&T recently completed the acquisition of satellite TV provider DirecTV, which has access to 20 million households in the United States and also holds the lucrative rights to the National Football League's Sunday Ticket package.

AT&T's broadband U-Verse service has another 5 million subscribers in the U.S. AT&T also still owns a huge wireless and landline phone business as well. This is the company many still know by its nickname Ma Bell after all.

With the addition of Time Warner, AT&T would gain control of household names in the media world: CNN, HBO, a collection of valuable cable channels like TNT and Cartoon Network and the Warner Bros. movie and TV studio.

A purchase of Time Warner would immediately make AT&T a global media giant, on par with cable company Comcast (CMCSA) -- which also owns NBCUniversal and DreamWorks Animation -- as well as Disney (DIS), the parent of ESPN, ABC, Lucasfilm, Pixar and Marvel.

AT&T CEO Randall Stephenson has made it known that he wants AT&T to control more programming. And the Comcast-NBC merger has proven that a content distribution firm can thrive by owning a media firm as well.

Bloomberg reported on Thursday that talks between AT&T and Time Warner have been taking place for several weeks.

Time Warner CEO Jeff Bewkes is a "willing seller" if he "gets an offer he thinks is fair," Bloomberg said, citing an anonymous source.

This isn't the first time that Time Warner has been in play. Rupert Murdoch's Fox (FOXA) made an offer for Time Warner in 2014 but withdrew the bid after it became clear that Time Warner was not interested in a deal.

At the time, a senior source involved in the bid said Murdoch was the wrong bidder at the wrong time.

"Wait two or three years," the source said, "and Time Warner will be on the market."

Sure enough, two years later there has been anticipation on Wall Street about a potential Time Warner transaction.

Analysts believe Time Warner's portfolio of entertainment and news businesses are a logical fit with several potential buyers, including AT&T. Gabelli's Haverty said an AT&T-Time Warner would make Stephenson's vision "strategically complete."

It is also becoming clear that content can be very valuable to large technology firms as well.

There were rumors circulating on Wall Street earlier this year that Apple (AAPL, Tech30) may be interested in making a bid for either Time Warner or Netflix (NFLX, Tech30).

Google parent Alphabet (GOOGL, Tech30) and Amazon (AMZN, Tech30) have also been mentioned in vague trader chatter as possible acquirers of Time Warner or other big media companies.

But Haverty doesn't think that one of the big tech firms will buy Time Warner.

He notes that software firm Salesforce (CRM, Tech30) recently faced a shareholder revolt when it was rumored to be seriously considering a bid for struggling social media company Twitter (TWTR, Tech30) -- and Salesforce ultimately decided against a deal.

Haverty said Apple or Alphabet could face similarly disgruntled investors if either proposed a purchase of Time Warner.

Still, any deal for Time Warner could kick off another wave of mergers in the media sector.

CBS (CBS), which also owns the cable network Showtime as well as the Eye Network, is already said to be in talks to reunite with Viacom (VIAB), the owner of the Paramount movie studio, Nickelodeon and MTV.

Sumner Redstone and his family control both companies.

But Dave Novosel, a media analyst for corporate bond research firm Gimme Credit, noted in a report earlier this month that CBS might be more interested in selling to Time Warner instead of merging with Viacom.

"We think that CBS would rather combine with Time Warner," he wrote, adding that "Time Warner would provide an attractive film business, which CBS does not have but presumably would like" and that "HBO would be a nice complement to Showtime."

Whether or not Time Warner wants to be an acquirer as opposed to a seller is debatable.

A Time Warner acquisition may cause Fox and Disney to consider big deals of their own too.

To that end, shares of three other big cable programming companies -- AMC Networks (AMCX), Discovery Communications (DISCA) and Scripps Networks Interactive (SNI) -- all surged Friday as well.

If Time Warner is sold, it would mark the end of an era for what was once an even larger media powerhouse.

Time Warner controversially merged with AOL back in 2000, a deal that many still view as one of the least successful in corporate history.

But under the leadership of Bewkes, Time Warner has spun off AOL (now owned by Verizon (VZ, Tech30)), Time Warner Cable (now a part of Charter Communications (CHTR)) and the magazine and book publishing unit Time Inc (TIME).

"Bewkes has created a pure play content firm that may only be rivaled by Disney. Selling to AT&T would answer the question of what's next for Time Warner," Haverty said.</s>AT&T Inc is set to announce as early as Saturday an $85-billion deal to buy Time Warner Inc., sources familiar with the matter said, giving the telecom company control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets.

The deal would be the biggest merger in the world this year and one of the largest in recent years in the sector. Telecommunications companies have been looking for quality content to stream over their high-speed networks, hoping to attract a growing group of viewers who want to ditch traditional pay-TV packages in favour of streamlined offerings or watching online.

AT&T will pay $110 per Time Warner share, half in cash and half in stock, worth about $85-billion overall, sources told Reuters. It will need to line up financing to pay for the deal, since it only has $7.2-billion in cash on hand. This could put pressure on its credit rating as it already had $120-billion in net debt as of June 30, according to Moody’s.

The boards of the two companies were meeting on Saturday to approve the deal, sources told Reuters.

A deal would likely face intense scrutiny by U.S. antitrust regulators. The government may worry that other cable and internet companies would be denied access to Time Warner content like HBO and CNN, said Andre Barlow, an antitrust lawyer at the law firm Doyle, Barlow & Mazard.

U.S. Republican presidential nominee Donald Trump, who has complained about what he sees as unfair coverage of his campaign, said at a rally on Saturday he would block any AT&T-Time Warner deal if he wins the Nov. 8 election.

“It’s too much concentration of power in the hands of too few,” Trump said.

AT&T, whose main wireless phone and broadband service business is showing signs of slowing, has already made moves to turn itself into a media powerhouse. It bought satellite TV provider DirecTV last year for $48.5-billion.

In 2014, AT&T entered a joint venture, Otter Media, with the Chernin Group to invest in media businesses, and it has rolled out video streaming services.

Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio, producer of the “Batman” and “Harry Potter” film franchises. The company also owns a 10 per cent stake in video streaming site Hulu.

Time Warner Chief Executive Officer Jeff Bewkes rejected an $80-billion offer from Twenty-First Century Fox Inc <FOXA.O> in 2014, but sources said on Friday that the former suitor had no plans to renew its bid.

The Wall Street Journal reported on Friday that Apple Inc <AAPL.O> approached Time Warner a few months ago about a possible merger.

Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings or switch to watching online. New mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers.

“We think 5G mobile is coming, we think 5G mobile is an epic game-changer,” Rich Tullo, director of research at Albert Fried & Company, said in a research note, adding that mobile providers would be in position to disrupt traditional pay-TV services.

A previous Time Warner blockbuster deal, its 2000 merger with AOL, is now considered one of the most ill-advised corporate marriages on record.

Dallas-based AT&T and New York-based Time Warner did not immediately return calls for comment.</s>Time Warner's stock soared nearly 10% Friday on reports that telecom and media giant AT&T may make a takeover bid for the company.

The Wall Street Journal, citing anonymous sources, said that a deal could happen as soon as this weekend. (Time Warner is the parent company of CNN.)

Shares of AT&T were down 4% after the news broke.

AT&T declined to comment to CNNMoney, and Time Warner (TWX) did not immediately return requests for comment.

There was no indication how much AT&T was willing to pay for Time Warner. AT&T reportedly would use cash and its own stock to finance the deal. It is currently worth $230 billion, while Time Warner's market value is about $72 billion.

But any AT&T-Time Warner deal would be subject to a lengthy regulatory review process.

That's because an acquisition of Time Warner would cement AT&T (T, Tech30) as one of the country's dominant media companies, with significant control over both programming and the distribution of that programming.

AT&T recently completed the acquisition of satellite TV provider DirecTV, which has access to 20 million households in the United States and also holds the lucrative rights to the National Football League's Sunday Ticket package.

AT&T's broadband U-Verse service has another 5 million subscribers in the U.S. AT&T also still owns a huge wireless and landline phone business as well. This is the company many still know by its nickname Ma Bell after all.

With the addition of Time Warner, AT&T would gain control of household names in the media world: CNN, HBO, a collection of valuable cable channels like TNT and Cartoon Network and the Warner Bros. movie and TV studio.

A purchase of Time Warner would immediately make AT&T a global media giant, on par with cable company Comcast (CMCSA) -- which also owns NBCUniversal and DreamWorks Animation -- as well as Disney (DIS), the parent of ESPN, ABC, Lucasfilm, Pixar and Marvel.

Bloomberg reported on Thursday that talks between AT&T and Time Warner have been taking place for several weeks.

Time Warner CEO Jeff Bewkes is a "willing seller" if he "gets an offer he thinks is fair," Bloomberg said, citing an anonymous source.

This isn't the first time that Time Warner has been in play. Rupert Murdoch's Fox (FOXA) made an offer for Time Warner in 2014 but withdrew the bid after it became clear that Time Warner was not interested in a deal.

At the time, a senior source involved in the bid said Murdoch was the wrong bidder at the wrong time.

"Wait two or three years," the source said, "and Time Warner will be on the market."

Sure enough, two years later there has been anticipation on Wall Street about a potential Time Warner transaction.

Analysts believe Time Warner's portfolio of entertainment and news businesses are a logical fit with several potential buyers, including AT&T. It is also becoming clear that content can be very valuable to large technology firms as well.

To that end, there were rumors circulating on Wall Street earlier this year that Apple (AAPL, Tech30) may be interested in making a bid for either Time Warner or Netflix (NFLX, Tech30).

Google parent Alphabet (GOOGL, Tech30) and Amazon (AMZN, Tech30) have also been mentioned in vague trader chatter as possible acquirers of Time Warner or other big media companies.

Any deal for Time Warner could kick off another wave of mergers in the media sector.

CBS (CBS) is already said to be in talks to reunite with Viacom (VIAB), the owner of the Paramount movie studio, Nickelodeon and MTV. Sumner Redstone and his family control both companies.

A Time Warner acquisition may cause Fox and Disney to consider big deals of their own too.</s>NEW YORK (AP) — Grab some popcorn — AT&T wants to take you to the movies.

At least that’s the word on Wall Street after several reports citing unnamed sources said the giant phone company is in advanced talks to buy Time Warner, owner of the Warner Bros. movie studio as well as HBO and CNN. AT&T is said to be offering $80 billion or more, a massive deal that would shake up the media landscape.

The acquisition would combine a telecom giant with a leading cellphone business, DirecTV and internet service with the company behind some of the world’s most popular entertainment, including “Game of Thrones,” ”The Big Bang Theory” and professional basketball. It would be the latest in a scramble of tie-ups between the owners of digital distribution networks — think cable and phone companies — and entertainment and news providers, all aimed at shoring up businesses upended by the internet.

The Wall Street Journal reported Saturday that the boards of AT&T and Time Warner were meeting to approve the deal. Calls to those companies for comment were not immediately returned.

Regulators would have to sign off on the deal. Shares of AT&T, as is typical of acquirers in large deals, fell on the reports, ending Friday down 3 percent.

Companies that provide phone and internet connections are investing in media to find new revenue sources and ensure they don’t get relegated to being just “dumb pipes.” Verizon bought AOL last year and has now proposed a deal for Yahoo to build a digital-ad business. Comcast bought NBCUniversal in 2011.

AT&T has been active, too.

After its attempt to buy wireless competitor T-Mobile was scrapped in 2011 following opposition from regulators, the company doubled down on television by purchasing satellite-TV company DirecTV for $48.5 billion. AT&T is expected to offer a streaming TV package, DirecTV Now, by the end of the year, aimed at people who have dropped their cable subscriptions or never had one.

The pressure on AT&T has been intense.

The venerable phone company with roots back to Alexander Graham Bell has to contend with slowing growth in wireless services, given that most Americans already have smartphones, and it faces new competitors for that business from cable companies. Comcast plans to launch a cellphone service for its customers next year.

Buying Time Warner may be “a good defensive move” against Comcast as the cable giant continues stretching into new businesses, New Street Research analyst Jonathan Chaplin said in a Friday note. Comcast bought movie studio DreamWorks Animation in August.

Several analysts say the AT&T deal will likely face opposition from Washington.

John Bergmayer of the public-interest group Public Knowledge, which often criticizes media consolidation, warned of harm to consumers.

For example, he said AT&T might refuse to carry channels that could compete with Time Warner’s networks. Or on its phones, AT&T could let wireless customers watch TV and movies from Time Warner without using their data, in turn disfavoring video from other providers.

If the deal is approved, regulatory conditions could limit AT&T’s ability to favor Time Warner video or give AT&T customers better deals. It would be one of the largest media mergers since Time Warner’s disastrous sale to AOL in 2000.

Time Warner, meanwhile, has moved to counter the threat that sliding cable subscriptions poses to its business. Among other things, it launched a streaming version of HBO for cord-cutters and, alongside an investment in internet TV provider Hulu, added its networks to Hulu’s live-TV service that’s expected next year.

Before reports last week of a possible deal with AT&T, Time Warner’s stock had risen 23 percent this year, outpacing the Standard & Poor’s 500.</s>AT&T has agreed to buy Time Warner Inc for $85.4 billion, the boldest move yet by a telecommunications company to acquire content to stream over its network to attract a growing number of online viewers.

The biggest deal in the world this year will, if approved by regulators, give AT&T control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. The tie-up will likely face intense scrutiny by US antitrust enforcers worried that AT&T might try to limit distribution of Time Warner material.

AT&T will pay $107.50 per Time Warner share, half in cash and half in stock, worth $85.4 billion overall, according to a company statement. AT&T said it expected to close the deal by the end of 2017.

Dallas-based AT&T said the US Department of Justice would review the deal and that the companies were determining which Federal Communications Commission licenses, if any, would be transferred to AT&T in the deal.

US lawmakers were already worried about cable company Comcast Corp’s $30 billion acquisition of NBCUniversal, and several argued for close regulatory scrutiny of the AT&T deal.

“Such a massive consolidation in this industry requires rigorous evaluation and serious scrutiny,” said US Senator Richard Blumenthal, Senate Judiciary Committee member and former attorney general of Connecticut. “I will be looking closely at what this merger means for consumers and their pocketbooks.”

US Republican presidential nominee Donald Trump said at a rally he would block any AT&T-Time Warner deal if he wins the November 8th election. Mr Trump has complained about media coverage of his campaign, especially by Time Warner’s CNN.

“It’s too much concentration of power in the hands of too few,” said Mr Trump.

Representatives of his Democratic rival, Hillary Clinton, did not immediately respond to a request for comment.

AT&T, whose main wireless phone and broadband service business is showing signs of slowing, has already made moves to turn itself into a media powerhouse. It bought satellite TV provider DirecTV last year for $48.5 billion.

It had about 142 million North American wireless subscribers as of June 30th, and about 38 million video subscribers through DirecTV and its U-verse service.

New York-based Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio, producer of the Batman and Harry Potter film franchises. The company also owns a 10 percent stake in video streaming site Hulu. The HBO network alone has more than 130 million subscribers.

AT&T Chief Executive Officer Randall Stephenson told reporters on a conference call that owning Time Warner and all its content will provide a greater competitive advantage than just continuing to license it.

Talks between Stephenson and Time Warner CEO Jeff Bewkes began in August, they said. “Jeff and I both had a vision that if you put these two together, you could innovate much faster,” said Stephenson.

Mr Bewkes, who rejected an $80 billion offer from Twenty-First Century Fox Inc in 2014, will stay on for an open-ended period of time to help with the integration.

Mr Stephenson called the deal “vertical” rather than “horizontal” and played down regulatory hurdles.

“There’s no competitor being removed from the marketplace, there’s no competitive harm that is being rendered by putting these two companies together,” said Stephenson. “So any concerns by the regulators, we believe, will be adequately addressed by conditions, that’s our anticipation.”

Time Warner must pay AT&T $1.725 billion if it finds a different buyer. If regulators block the deal, AT&T must pay Time Warner $500 million, according to people familiar with the deal.

The telecom and media sectors have been consolidating. In addition to Comcast’s purchase of NBCUniversal, AT&T’s wireless rival Verizon Communications Inc is in the process of buying internet company Yahoo Inc for about $4.8 billion.

AT&T said it would finance the cash portion of the purchase with new debt and cash on its balance sheet. AT&T said it has an 18-month commitment for an unsecured bridge term facility for $40 billion.</s>NEW YORK — AT&T Inc is set to announce an $85 billion deal to buy Time Warner Inc on Saturday, sources familiar with the matter said, the boldest move yet by a telecommunications company to acquire content to stream over its high-speed network in an attempt to appeal to a growing number of online viewers.

The biggest deal in the world this year would give AT&T control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. It would likely face intense scrutiny by U.S. antitrust regulators worried that AT&T might try to limit distribution of Time Warner material.

AT&T will pay $110 per Time Warner share, half in cash and half in stock, worth about $85 billion overall, sources told Reuters.

The Dallas-based company will need to line up financing to pay for the deal, since it has only $7.2 billion in cash on hand. This could put pressure on its credit rating as it already had $120 billion in net debt as of June 30, according to Moody’s.

The boards of the two companies were meeting on Saturday to approve the deal, sources told Reuters.

U.S. Republican presidential nominee Donald Trump, who has complained about what he sees as unfair coverage of his campaign, said at a rally on Saturday he would block any AT&T-Time Warner deal if he wins the Nov. 8 election.

“It’s too much concentration of power in the hands of too few,” said Trump.

Representatives of his Democratic rival, Hillary Clinton, did not immediately respond to a request for comment.

The American Cable Association, which represents independent U.S. cable TV operators, said on Saturday that “combining valuable content with pay-TV distribution causes harm to consumers and competition in the pay-TV market,” and urged regulators to closely examine the deal.

AT&T, whose main wireless phone and broadband service business is showing signs of slowing, has already made moves to turn itself into a media powerhouse. It bought satellite TV provider DirecTV last year for $48.5 billion.

It had about 142 million North American wireless subscribers as of June 30, and about 38 million video subscribers through DirecTV and its U-verse service.

New York-based Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio, producer of the “Batman” and “Harry Potter” film franchises. The company also owns a 10 percent stake in video streaming site Hulu. The HBO network alone has more than 130 million subscribers.

AT&T is following in the footsteps of cable company Comcast Corp, which acquired NBCUniversal for about $30 billion and DreamWorks Animation in a bid to control how television shows and movies are made and how they are delivered to viewers.

Meanwhile, AT&T’s wireless rival Verizon Communications Inc is in the process of buying internet company Yahoo Inc for about $4.8 billion.

Time Warner Chief Executive Officer Jeff Bewkes rejected an $80 billion offer from Twenty-First Century Fox Inc in 2014. Sources said on Friday that the former suitor had no plans to renew its bid.

The Wall Street Journal reported on Friday that Apple Inc approached Time Warner a few months ago about a possible merger.

Owning more content gives cable and telecom companies bargaining leverage with other content companies as customers demand smaller, hand-picked cable offerings or switch to watching online. New mobile technology including next-generation 5G networks could make a content tie-up especially attractive for wireless providers.

“We think 5G mobile is coming, we think 5G mobile is an epic game-changer,” Rich Tullo, director of research at Albert Fried & Co, said in a research note, adding that mobile providers would be in position to disrupt traditional pay-TV services.

A previous Time Warner blockbuster deal, its 2000 merger with AOL, is now considered one of the most ill-advised corporate marriages on record.

AT&T and Time Warner did not respond to requests for comment.</s>AT&T is in advanced discussions to acquire media conglomerate Time Warner, and a deal could come as early as this weekend, the Wall Street Journal reported on Friday.

The talks have come together quickly and revolve around a cash-and-stock deal which would be one of the largest in the sector in recent years as telecom companies make a grab for media providers to acquire content, the Journal reported.

Time Warner shares jumped 11.4 per cent to $92.40 in late Friday morning trading. AT&T shares were down 3.3 per cent at $37.39.

Time Warner, which has a market capitalisation of about $65 billion, is an attractive target for AT&T, which has a market capitalization of about $238 billion, because of its premium cable channel HBO, the CNN news network, film studio Warner Bros and other media assets.

AT&T, which sells wireless phone and broadband services, has already made moves to turn itself into a media powerhouse, buying satellite TV provider DirecTV last year for $48.5 billion.

Owning content gives cable and telecom companies leverage as customers demand smaller, hand-picked cable television offerings or dispense with cable altogether and watch shows via the internet.

Time Warner chief executive Jeff Bewkes has not been willing to sell the company in the past. The company rejected an $80 billion offer from Twenty-First Century Fox in 2014.

Time Warner was not immediately available for comment. AT&T declined to comment.

Bloomberg reported on Thursday that executives of both companies had discussed various business strategies, including a possible merger, in recent weeks.</s>AT&T and Time Warner have agreed to an $85 billion deal -- one of the biggest media tie-ups ever.

The move, announced Saturday evening, will help AT&T expand beyond wireless and Internet service into programming. Time Warner (TWX) is the parent of CNN, TNT, HBO, the Warner Bros. studio, and other channels and websites.

AT&T (T, Tech30), which dates back to the invention of the telephone in 1876, is one of the country's largest providers of wireless phone and Internet service. It also recently acquired the DirecTV satellite TV business.

The deal will be subject to a review by government regulators that could take more than a year to complete.

AT&T will pay $107.50 a share -- a big premium over where Time Warner stock was trading last week. Including Time Warner's debt, the deal's value is $109 billion.

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AT&T-Time Warner is a union of programming and distribution.

On a conference call with the media, Time Warner CEO Jeff Bewkes and AT&T CEO Randall Stephenson said the two companies have been in talks since August. The two met in New York for a "periodic check-in ... and the more we talked, the more the deal fell in place," Bewkes said.

"We have a very common view of the world," Stephenson added. "This thing just had what we called gravity. We started negotiating terms very quickly."

Word of the possible deal leaked out on Thursday; AT&T executives were said to be eager to finish the talks before the market opens on Monday morning.

Adding Time Warner will help AT&T to diversify its business beyond wireless phone and Internet services. Stephenson has spoken publicly about his desire to own valuable programming.

Gaining Time Warner will give AT&T entry into entertainment, news and sports.

Time Warner includes everything from "Game of Thrones," on HBO, to "Anderson Cooper 360," on CNN, to "The Big Bang Theory," produced by Warner Bros., to March Madness basketball games, aired by several Turner cable channels.

With HBO and CNN on one side of the company, and wireless on the other side, AT&T will have more power to shape the future of media.

AT&T said in its announcement that "the future of mobile is video, and the future of video is mobile."

The deal will also keep Time Warner out of the hands of AT&T's huge rivals, including Verizon, (VZ, Tech30) Comcast (CCV), and Apple (AAPL, Tech30).

Bewkes will remain Time Warner CEO during the regulatory review. Afterward, he'll stay on to "ensure a smooth transition," he told reporters.

In some ways, the deal resembles Comcast's 2011 acquisition of NBCUniversal. Comcast, a dominant cable distributor, wanted to own cable channels and a movie studio. That deal was approved, with restrictions, by regulators.

Donald Trump said earlier on Saturday that he would block the merger if elected president. He also said he would try to break up Comcast-NBC.

Hillary Clinton's campaign has not commented.

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AT&T-Time Warner is not a "horizontal merger," meaning two companies with similar businesses coming together and combining operations. Instead, it is a "vertical merger," placing two different kinds of businesses under the same roof.

A Time Warner acquisition by AT&T may start a new wave of consolidation and cause 21st Century Fox and Disney to consider big deals of their own. Shares of three other smaller cable programming companies -- AMC, Discovery Communications and Scripps Networks -- all surged on Friday.

-- CNNMoney's David Goldman and Paul R. La Monica contributed to this report.
AT&T reportedly agrees in principle to buy Time Warner for about $85 billion.