AT&T in advanced talks to buy Time Warner

Such a deal would unite AT&T’s various mobile and TV provider holdings – AT&T Wireless, DirecTV, U-Verse, etc. – with Time Warner’s wide family of TV networks including HBO, TNT, TBS, Turner Sports, and CNN. AT&T Inc. (NYSE:T) is up by 11.26 percent in 2016, valuing the Dallas-based firm at about $237.9 bn. TV Studios and Warner Bros.

The Department of Justice past year successfully stopped cable provider Comcast’s purchase of Time Warner Cable that would have married content with wider distribution.

AT&T has transformed itself over the last decade from a regional phone company to a national telecommunications powerhouse.

This will be the largest acquisition of the year for AT&T after buying DirecTV for $49 billion.

AT&T’s long-dated bonds dropped after the news. President Peter Chernin, who now runs his own entertainment company. Time Warner Cable sold to Charter previous year in a $55 billion deal. It led to massive write-downs and eventually a de-merger agreement. It would come during a changing of the guard in Washington and it’s unclear whether regulators within a Donald Trump or Hillary Clinton administration would consent to such a dramatic consolidation. Rupert Murdoch-controlled 21st Century Fox offered $80bn, before withdrawing the offer as Bewkes rejected it and asked for a higher valuation. No numbers have been released on this deal, but Time Warner has been valued at well above that. The company would gain access to a range of famous programming by acquiring Time Warner, including HBO, Cartoon Network and NBA basketball.

Meanwhile, Dallas-based AT&T has a market cap of almost $238 billion, based on its Thursday closing price of $38.65.

Analysts believe Time Warner’s portfolio of entertainment and news businesses are a logical fit with several potential buyers, including AT&T.