*(Bloomberg via Crain’s Chicago Business) — Time Warner has agreed to be acquired by AT&T in a stock and cash transaction that values the entertainment conglomerate at $86 billion.

Investors will get up to $110 per share of Time Warner, roughly a 40 percent premium to where the stock traded last week, before news leaked that the two companies were in advanced talks. The deal still needs some final details hammered out between both sides, and may be officially announced before the end of the weekend, the person said.

The boards of both companies came to a preliminary agreement during meetings anchored in New York on Saturday, the person said. The agreement was first reported by The Wall Street Journal.

The combination of AT&T and Time Warner will create a media-telecommunications firm that is much larger than Comcast, the giant cable TV distributor that purchased NBCUniversal five years ago. It also makes AT&T a major media power player after its acquisition last year of DirecTV for $48.5 billion.

But the provider of phone services wanted to shore up its thrust into entertainment with a steady pipeline of TV shows and movies that it owns. Some say, though, that snapping up Time Warner may be a risky strategy.

Oh really? Find out what the deal is at Crain’s Chicago Business.