However the deal which will be one of the biggest deals this year still needs approval from regulators.
AT&T’s chairman in his statement described the deal as “a perfect match” , however we think this deal will result in too much concentration of media power in one hand .
If the deals take place, it will result in combining content from the Warner Brothers film studios and its cable TV channels HBO and CNN with AT&T’s distribution network.
In a Statement AT&T said that the deal aims to give its customers “unmatched choice, quality, value and experiences that will define the future of media and communications” and the new company would “lead the next wave of innovation in converging media and communications industry”.
AT&T will pay $107.50 for each Time Warner share, in a combination of cash and stock, worth $85.4bn overall, according to a statement.
Lately AT&T has been making moves to turn itself into a media powerhouse, earlier they bought satellite TV provider DirecTV.
In the past however Time Warner chief executive Jeff Bewkes has, resisted selling the company in the past. They rejected an $80bn offer from Twenty-First Century Fox Inc in the year 2014.
It is expected that the deal will be completed by the end of 2017.