Shares of Time Warner gained over 10.1 percent in morning trading Friday after a new report from Bloomberg indicated that telecommunications giant AT&T was in talks to take over the media company.
According to people familiar with the matter, AT&T and Time Warner executives have met in recent weeks to discuss a variety of potential new business strategies, including a merger. Industry speculation over the last few months has revolved around AT&T's interest in boosting its media portfolio with an acquisition.
The original Bloomberg story, which broke late Thursday, said that merger talks were only in the most preliminary stage, with neither company even brining a financial advisor to the meetings yet. However, things look to be progressing quickly; a new report from The Wall Street Journal published early Friday claims that the talks are now "advanced."
"A deal, which could happen as early as this weekend, would unite AT&T's portfolio of wireless, broadband and satellite TV services with Time Warner's entertainment empire, which includes cable networks such as TNT, TBS, CNN, the coveted premium channel HBO, and the Warner Bros. film and TV studio," the WSJ said.
AT&T's interest in Time Warner further highlights the changing tide of the telecommunications business, which is desperately trying to keep up with evolving consumer behavior. For Time Warner, the decision to sell will likely come down to whether the price is right; while the media business is often volatile, Time Warner has put together a decent year, with shares up over 22 percent heading into Friday.
