AT&T and Time Warner have reportedly held informal talks regarding a possible merger
AT&T and Time Warner have reportedly met in recent weeks to discuss potential business strategies, one of which being a possible merger.Sources familiar with the matter tellBloombergthat the talks are still at an “informal” stage and have thus far focused on building a relationship between the companies.Neither side has yet hired a financialadvisor, a typical move when companies are considering conducting a significant business transaction like a merger or buyout.One of the sources said Time Warner Chairman and Chief Executive Officer Jeff Bewkes would be willing to sell if a fair offer is put on the table. In 2014, he turned down an offer of $85 per share from 21stCentury Fox which would have valued Time Warner north of $75 million.Time Warner stock has been trading just south of $80 during the last few days, shooting up to $83 on news of the discussions. AT&T shares dippedroughly two percent near the end of closing on Thursday.Sources earlier this month told Bloomberg that AT&T is interested in acquiring businesses that will expand its reach into media and entertainment. Havingscooped up DirecTVlast year for $48.5 billion and havingspent around $18 billionin last year’s airwaves auction left the company with just $7.2 billion in cash, far short of what it would needto land a cash-only deal for Time Warner.