Thursday, 28 May 2015

Charter to acquire Time Warner Cable for $78.7 billion

Charter Communications, American cable telecommunications company has agreed on 26 May to buy Time Warner Cable for $78.7 billion. 
Under the terms of the proposed deal, Charter offered investors in Time Warner Cable $195.71 for each share in the company in a cash-and-stock deal. That values Time Warner Cable at $78.7 billion, roughly 14% higher than its closing stock price on 22May. 
If the deal is completed, the combined company will be named New Charter and its services will be sold under the brand name Spectrum. Charter also confirmed on 26 May that it would continue with its separate, cash-andstock bid to acquire Bright House Networks, a smaller competitor, for $10.4 billion.The two acquisitions would approximately quadruple Charter's base to about 24 million customers, compared with Comcast's 27 million.
As part of the deal, which is expected to close by the end of the year, Time Warner Cable shareholders will hold as much as 44% of the combined entity, according to the Charter statement. Investors in Advance Newhouse, the parent company of Bright House Networks, will retain a stake of roughly 14%, and Liberty Broadband, which is owned by Malone, will hold a 20% stake.
Charter made a hostile bid for Time Warner Cable in early 2014 but Comcast became highest bidder and tried to purchase Time Warner Cable at $45 billion. The deal broke down after regulators and competitors raised concerns that a combined Comcast-Time Warner Cable could become a monopoly.
Sourcehttp://cablequest.org/news/international-news/item/7030-charter-to-acquire-time-warner-cable-for-$78-7-billion.html

Source: http://cablequest.org/news/international-news/item/7030-charter-to-acquire-time-warner-cable-for-$78-7-billion.html

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