AT&T is in advanced talks to acquire Time Warner, according to three people briefed on the discussions, a deal that could be the largest in the United States this year.
The transaction is not yet final and may fall apart, said the people, who asked not to be named discussing private information.
Shares of Time Warner rose 9 percent in heavy trading Thursday afternoon after Bloomberg News reported the discussions. On Friday, its shares were up about 8 percent, while AT&T shares were down about 3 percent.
With the recent run-up in its stock price, Time Warner has a stock market value of nearly $73 billion. AT&T is much larger, with a market value of $231 billion.
The apparent interest in Time Warner comes more than two years after AT&T announced a $48.5 billion deal for DirecTV, the nation’s largest satellite television provider. The merger created the country’s largest television distributor with about 26 million subscribers, surpassing Comcast.
Another large acquisition would be very difficult for AT&T to digest. The company has a debt load of about $130 billion, with just $7 billion in cash on hand.
With its wireless business facing limits to growth and television challenged more broadly, AT&T has sought to diversify through video content. Analysts have said it may pursue acquisitions to achieve that strategy.
Distributors like AT&T, Verizon Communications and Comcast have been either investing or buying companies that produce the content to gain control over their customers’ entertainment experiences. By purchasing DirecTV, AT&T obtained the rights to NFL Sunday Ticket, giving customers access to every football game. The company also created a joint venture in 2014 with the Chernin Group to invest in media businesses and start internet streaming video services.
Some analysts are skeptical that AT&T and Time Warner would actually reach a deal.
AT&T has said its “plate is full” in absorbing DirecTV, Mike McCormack, an analyst with Jefferies, said in a note. He also pointed out the high hurdles for the combined company to get regulatory approval from the Federal Communications Commission.