CNN is about to be sold off to one of United States largest telecom giants, AT&T.
AT&T will also buy off all of Time Warner’s subsidiary businesses in a deal believed to worth more than $80 billion dollars.
Time Warner owns other subsidiary businesses including CNN, Warner Bros. film and TV studios, the HBO television production group, TNT and TBS cable channels.
AT & T’s aim is to add in-house content to its distribution services, a banking source familiar with the negotiations said Saturday.
An official announcement is expected before Monday’s trading session on Wall Street.
AT&T is the second-largest US wireless carrier and third-largest cable TV provider in the United States.
On the other hand, Time Warner controls a valuable stable of entertainment content suppliers.
A union of the two media giants will worth more than $300 billion in market value. CNN alone is expected to skyrocket AT&T’s worth.
The merger is sure to face tough scrutiny from antitrust regulators because of potential ripple effects across media platforms.
A deal could price Time Warner at more than $105-110 per share, or more than $80 billion, the source said.
Analysts believe the transaction also could prompt other big deals involving large media companies.
Recall that Apple had approached Time Warner about a possible deal a few months ago.
The deal fell through the roof.
Apple is continuing to monitor the negotiations between Time Warner and AT&T.
AT&T had $147 billion in revenues in 2015 while Time Warner reported $28 billion.
AT&T has pursued an aggressive expansion, paying almost $50 billion to buy satellite television provider DirectTV in 2015.
Time Warner shares soared 7.8% on Friday following reports of the talks.
They were up another 4.9% in after hours trading on fresh reports suggesting the two sides were even closer to a deal.
AT&T dropped 3.0% during regular-hours trading Friday, and fell another 0.7 percent in after-hours trade.