By Greg Roumeliotis and Jessica Toonkel

NEW YORK (Reuters) - AT&T Inc (T.N) said on Saturday it agreed to buy Time Warner Inc (TWX.N) for $85.4 billion, the boldest move yet by a telecommunications company to acquire content to stream over its high-speed network to attract a growing number of online viewers.

The biggest deal in the world this year will, if approved by regulators, give AT&T control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. It will likely face intense scrutiny by U.S. antitrust regulators worried that AT&T might try to limit distribution of Time Warner material.

AT&T will pay $107.50 per Time Warner share, in a combination of cash and stock, worth $85.4 billion overall, according to a statement.

AT&T said it expected to close the deal by the end of 2017.

(Additional reporting by David Shepardson, Liana Baker and Malathi Nayak; Editing by Bill Rigby and David Gregorio)