The acquisition would combine a telecom giant with a leading cellphone business, DirecTV and internet service with the company behind some of the world’s most popular entertainment, including “Game of Thrones,” ”The Big Bang Theory” and professional basketball. It would be the latest in a scramble of tie-ups between the owners of digital distribution networks – think cable and phone companies – and entertainment and news providers, all aimed at shoring up businesses upended by the internet.
The Wall Street Journal reported Saturday that the boards of AT&T and Time Warner were meeting to approve the deal. Calls to those companies for comment were not immediately returned.
Regulators would have to sign off on the deal. Shares of AT&T, as is typical of acquirers in large deals, fell on the reports, ending Friday down 3 percent.
Companies that provide phone and internet connections are investing in media to find new revenue sources and ensure they don’t get relegated to being just “dumb pipes.” Verizon bought AOL last year and has now proposed a deal for Yahoo to build a digital-ad business. Comcast bought NBCUniversal in 2011.
AT&T has been active, too.