CNN and Time to Time, which own CNN, have agreed to buy Time Warner for $85.6 billion.
Time Warner CEO Jeff Bewkes will also be named chairman.
Time will retain its majority stake.
The transaction is expected to close in the second half of 2018.
CNN will remain the primary news provider and entertainment outlet for CNN, but it will also provide news and information about a variety of entertainment, health, education and business topics.
CNN also will continue to air sports and entertainment programming.
The acquisition is expected at a valuation of about $85 per share.
CNN and other media companies have been grappling with how to best distribute their content and reach audiences online.
The news media has struggled with digital advertising, which has driven an increase in ad spend on social media and other platforms.
“We are excited to expand our reach to audiences on all platforms with CNN’s CNN Digital platform,” CNN President Jeff Zucker said in a statement.
The company will continue its business in print and on the web.
CNN, which is owned by Time Warner, is the third-biggest news network in the United States and the second-bigger.
CNN owns more than 500 newspapers and magazines and owns the largest cable television network in terms of audience size.
CNN’s ratings have improved as advertisers have shifted their advertising from traditional TV to digital platforms.