Report: AT&T Considered A Bid For Time Warner

The broadcast and telecom space got a jolt late Thursday afternoon, after a report that Time Warner Inc TWX and AT&T Inc. T considered a merger.

"Senior executives at AT&T and Time Warner Inc. have met in recent weeks to discuss various business strategies including a possible merger," according to Bloomberg.

Interestingly, a Barclays note from September 29 hypothesized that a deal like this could make sense.

"We look at a potential Time Warner-AT&T deal as Time Warner is one of the few media companies without super voting shares and has the potential to provide immediate industry scale," the note said. 

Related Link: Barclays Examines Possible Tie Up Between Time Warner, AT&T

The New York Post originally wrote on Sunday that the telecom giant is in buying mode last week, specifically to grow its music business.

Shares of both stocks reacted to the news. At time of writing, Time Warner was trading up over 5 percent, while AT&T shares were down 2 percent. 

Subscribers to Benzinga Pro were originally alerted to the news. 

A Time Warner spokesperson told Benzinga "we're not commenting" on the rumor.