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 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. 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. 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. 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. 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. 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. 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. AT&T declined to comment to CNNMoney, and Time Warner (TWX) did not immediately return requests for comment.
AT&T reportedly agrees in principle to buy Time Warner for about $85 billion.