AT&T and Time Warner are beginning talks for a potential merger, according to a report from Bloomberg.

Bloomberg reported senior executives from both companies have met to discuss business strategies including talks of a potential merger. The talks were "informal" at this time and no financial advisers have been hired, the sources said.

Sources previously told CNBC that AT&T was in the market to purchase a media property soon. In order to stay competitive with the likes of Verizon and Comcast, the telecommunications company needs to move into the media space. Doing so would give it the resources to become an advertising giant, because it would own not only Internet and cable access but content to advertise on. Experts said at that time that a large media company Time Warner made sense to complete AT&T's needs.

Time Warner and AT&T declined requests for comment.