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AT&T to announce deal to buy Time Warner as soon as Saturday - source

An AT&T logo and communication equipment is shown on a building in downtown Los Angeles, California October 29, 2014. REUTERS/Mike Blake/Files

(Reuters) - AT&T Inc and media company Time Warner Inc are likely to announce a merger deal as early as Saturday, according to a source familiar with the matter.

The two companies reached a deal in principle for about $85 billion, sources said on Friday, paving the way for what would be the biggest deal in the world this year.