Executives for telecommunications giant AT&T and media conglomerate Time Warner have met in recent weeks for strategic talks that included discussion of a possible megamerger, according to a Bloomberg report Thursday.
The talks are described as informal, focusing on building relationships between the companies rather than setting specific terms for a merger, the news outlet reported, citing unidentified people familiar with the matter. Time Warner CEO Jeff Bewkes is described as a willing seller, while AT&T CEO Randall Stephenson is said to be looking for fresh content, according to Bloomberg's sources.
The report didn't speculate on the value of such a deal, but it would be hefty; Time Warner stock traded up $3.75 on Thursday to close at $82.99, giving the New York-based company a market capitalization of $64 billion. An acquisition of that size would be AT&T's largest in the past 10 years, trumping its $49 billion takeover of DirecTV last year.
Meanwhile, Dallas-based AT&T has a market cap of nearly $238 billion, based on its Thursday closing price of $38.65.
Representatives for Time Warner and AT&T declined to comment for this report.