AT&P said on Wednesday it would acquire Charter Communications for $38.5 billion.
It would be the third Time Warner-owned broadband company in as many years to go public.
It’s expected that Charter will become a Time Warner company.
Time Warner, whose parent company, Charter, owns CNN and other media outlets, has been the biggest beneficiary of Charter’s deal.
The deal will allow Time Warner to acquire more of the companies data networks and more of its content, including HBO, the CW and other cable networks.
The companies deal would create a $37.5-billion (€34.2 billion) combined company that could compete with Charter, which is the biggest broadband provider in the U.S. Charter said it would continue to focus on its core business, including internet and video, with the rest of its portfolio under the Time Warner umbrella.
AT&T said in a statement it is committed to working with Charter and Time Warner on new business opportunities.
In its statement, the companies said the merger would create an integrated, vertically integrated, network of over 700,000 broadband Internet-ready businesses, and expand Charter’s broadband portfolio to more than 4 million customers.
AT&G said it plans to create over 1,000 jobs in the combined company, and it will invest in the company’s workforce and its facilities.
AT & T will invest $40 billion in new facilities and other assets to support the combined companies future growth, the statement said.
AT said it has been a strong investor in the media companies, including Time Warner, and Charter’s business has been expanding rapidly, including its expansion of broadband services to more markets and in new markets.
AT will continue to invest in its businesses and our media companies to build an industry that works for everyone, including our customers.
The deal comes as AT&T has been increasingly trying to position itself as a more aggressive provider of broadband.
AT&s new broadband investments have included a $50 billion purchase of Time Warner’s Bright House Networks last year, and an $80 billion deal with Charter to create its own broadband network in 2017.
AT, which has been under pressure to create a more competitive broadband business, is now the only major U.K. telecoms company to announce plans to invest $20 billion in broadband infrastructure.