for $85b, in one of the biggest mergers in media and telecoms

On Saturday, October 22, 2016, American multinational telecommunications conglomerate

This huge deal will make AT&T Americas biggest and largest entertainment company and also a power player in the Hollywood.

The deal which was done at a fast pace and announced by both companies will see AT&T pay $107.50 per share to Time Warner's investors.

With this deal, AT&T now has under its wing Warner Bros. (which is the biggest studio in Hollywood), HBO, CNN, Cartoon Network, TBS and TNT.

In 2014, Time Warner resisted a hostile takeover bid from Rupert Murdoch and his 21st Century Fox company. Time Warner convinced its investor that it would fare better on its own than under the ownership of the media mogul.

According to a press release from AT&T, this deal is creating "a new company with complementary strengths to lead the next wave of innovation in converging media and communications industry."

The merger will be formalized in 2017, after facing scrutiny from the Federal Communications Commission. Reaction to the merger was quick to surface with concerns raised on how the consumer will fare in this new mega deal.