Should the deal be approved by regulators, AT&T will take control of HBO, CNN, TNT, Warner Bros. studio and the rest of Time Warner’s assets.
"It's a great fit, and it creates immediate and long-term value for our shareholders," AT&T chairman and CEO Randall Stephenson said in a statement.
“This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers.
The merger is also subject to approval by Time Warner Inc. shareholders and review by the U.S. Department of Justice. AT&T and Time Warner are currently determining which FCC licenses, if any, will be transferred to AT&T in connection with the transaction. To the extent that one or more licenses are to be transferred, those transfers are subject to FCC review. The transaction is expected to close before year-end 2017.