【update Archives】

AT&T has reached a deal to buy Time Warner for $85.4 billion,update Archives a move that would create one of the most powerful media companies in the world.

The merger combines one of the biggest distribution companies with one of the biggest producers of TV and movies. AT&T owns DirecTV and is the second-largest wireless provider in the United States. Time Warner owns HBO and Turner Broadcasting System, which includes CNN, TBS and a host of other channels (Turner earlier this year made an investment in Mashable.)

In a press release, AT&T touted the merger as creating a "new company with complementary strengths to lead the next wave of innovation in converging media and communications industry."

“Time Warner’s leadership, creative talent and content are second to none. Combine that with 100 million plus customers who subscribe to our TV, mobile and broadband services – and you have something really special,” AT&T chairman and CEO Randall Stephenson said in a statement. “It’s a great fit, and it creates immediate and long-term value for our shareholders.”

The deal could trigger a fresh round of consolidation between media companies who will feel under pressure to compete with a unified AT&T and Time Warner -- as well as growing competition from major tech companies like Facebook, Google and Apple.

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Multiple news outlets reported throughout the day Saturday that the two companies had come to an agreement. AT&T confirmed the news with its announcement Saturday night.

Time Warner will be valued at $107.50 per share. Time Warner shareholders will own between 14.4 percent and 15.7 percent of AT&T shares, according to the release.

Both companies' boards approved the deal unanimously.

The merger wouldn't close until well into 2017. It will face intense scrutiny from regulators, particularly the Federal Communications Commission.

The most similar deal in recent years was Comcast's 2011 acquisition of NBCUniversal. An AT&T-Time Warner merger would add another player on that level to the ever-consolidating media landscape.

Strangely enough, Republican presidential nominee Donald Trump brought up the issue of media consolidation on Saturday, nothing that he would look to break up NBCUniversal and Comcast.

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