As per industry sources who spoke to Bloomberg, there is some relationship is built between to giant companies AT&T and Time Warner in recent weeks. The top executives from both the companies are frequently meeting these days with each other to discuss some business strategies, which also include a possible merger.

Although these discussions cannot be held indecisive phase as the sources have clarified that these are just initial and early talks only.

AT&T and Time Warner are in Early Talks of a Takeover

Report suggests that AT&T and Time Warner are in Early Talks of a Takeover

What Bloomberg is suggesting that the AT&T CEO Randall Stephenson is already looking for a business expansion and on the other side of the table the CEO of Time Warner Jeff Bewkes is said to be open to selling. AT&T is already adding more and more pay-TV options in its list and if this takeover happens then it will also have some of the premium TV channels like NBA Basketball, Cartoon Network and of course HBO. This will certainly make AT&T a major media player in no time.

The speculation helped Time Warner’s stock price touching $82.99 yesterday, which made the company’s market capitalization worth of $64 billion. On the other hand, AT&T registered a share price of $38.65 which has a market cap worth $238 billion. Although there is no word yet about the cost this deal would see.

In 2014 Time Warner board rejected an $85 per share offer from 21st Century Fox, which valued the company at more than $75 billion then. So if AT&T is willing for this purchase they might have to raise the price to a very good limit. But AT&T will go as far as $7.2 billion, which it has on hand in cash right now. The figure has arrived after they went on a spending spree to buy DirecTV last year, which they bought for $48.5 billion.

Both AT&T and Time Warner have refused to comment on this development.

Source: Bloomberg.com

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