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

The two firms have reached an in-principle deal for about $85 billion

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.