AT&T buying HBO and CNN owner Time Warner for $85.4 billion

FILE - In this May 14, 2014 file photo, an AT&T logo on a store in Dedham, Mass. AT&T Mobility LLC has been hit with a $100 million fine for offering consumers “unlimited” data, but then slowing their Internet speeds after they hit a certain amount. The Federal Communications Commission (FCC), which regulates the telecommunications industry, says the company misled consumers with the plans. Officials say the company would slow speeds dramatically at times, to levels lower than advertised. (AP Photo/Steven Senne, File)
FILE - In this May 14, 2014 file photo, an AT&T logo on a store in Dedham, Mass. AT&T Mobility LLC has been hit with a $100 million fine for offering consumers “unlimited” data, but then slowing their Internet speeds after they hit a certain amount. The Federal Communications Commission (FCC), which regulates the telecommunications industry, says the company misled consumers with the plans. Officials say the company would slow speeds dramatically at times, to levels lower than advertised. (AP Photo/Steven Senne, File)

NEW YORK (AP) — AT&T is buying Time Warner, owner of the Warner Bros. movie studio as well as HBO and CNN, for $85.4 billion in a deal that could shake up the media landscape.

The merger combines a telecom giant that owns a leading cellphone business, DirecTV and internet service with the company behind some of the world’s most popular entertainment. It’s the latest tie-up between the owners of digital distribution networks — think cable and phone companies — and entertainment and news providers, one aimed at shoring up businesses upended by the internet.

The deal would make Time Warner the target of the two largest media-company acquisitions on record, according to Dealogic. The highest was AOL’s disastrous $94 billion acquisition of Time Warner at the end of the dot-com boom.