Time Warner stock soars on news of an imminent sale to AT&T

vendredi 21 octobre 2016

AT&T is in advanced talks to acquire Time Warner in a deal that could be announced soon, sources confirmed on Friday.

News of the possible deal sent Time Warner shares surging 12 percent Friday, breaking a 15-year high. Trading had been temporarily halted earlier.

The Wall Street Journal reported that a deal could come as early as this weekend.

The two companies had discussed a number of alternatives, people familiar with the matter told CNBC earlier on Thursday.

Time Warner and AT&T have declined to comment.

Bloomberg initially reported Thursday that executives of both companies had discussed a possible merger.

The deal would merge AT&T with the entertainment giant whose holdings include Warner Bros. and cable networks including TBS, TNT and CNN.

This report comes amid consolidation in the media industry, as more customers "cut the cord" on their cable subscriptions, providing a challenge to TV companies. For example, nearly 6 percent of subscribers told Magid Advisors they were"extremely likely" to cancel their service in the next year, from just under 2 percent in 2011.

— CNBC's David Faber and Anita Balakishnan contributed to this report.

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Time Warner stock soars on news of an imminent sale to AT&T

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