Comcast Snatches Time Warner Cable Away From Charter In $45B Deal

Feb 13 2014, 3:02am CST | by

In fending off an increasingly hostile takeover attempt by Charter Communications, Time Warner Cable had insisted it was worth $160 a share. Now it appears that’s what its shareholders will get.

Comcast has reportedly agreed to buy its smaller rival in an all-stock deal for roughly $159 a share, or $45 billion. The combination of the nation’s biggest and second biggest cable providers would create a behemoth with 33 million subscribers. To pass muster with anti-trust authorities and the FCC, Comcast is reportedly planning to divest cable systems with 3 million subscribers, keeping its share of the market below 30%.

The surprise deal is expected to be announced Thursday morning. It should end an eight-month-long pursuit of Time Warner Cable by Charter Communications and controlling shareholder John Malone, who had made three offers, the latest of which was worth $132.50 a share. On Tuesday, Charter had announced it would nominate 13 candidates for Time Warner Cable’s board who would presumably have been friendlier to Charter’s advances.

The deal thwarts Malone’s ambitions to reclaim a dominant position in the industry he helped to create in the 1980s. He sold TCI, then the nation’s largest cable company, to AT&T in 1999 for $54 billion. Last May the billionaire bought back in to the U.S. cable business, acquiring a 27% stake in Charter through his Liberty Media.

With many pay TV providers hemorrhaging subscribers and programming costs rising, Malone has been one of a number influential figures advocating industry consolidation.

Comcast, led by CEO Brian Roberts, had recently held talks with Charter to acquire some of Time Warner Cable’s East Coast units in the event that Charter succeeded in its bid, according to the Wall Street Journal. Apparently the company decided that wasn’t enough. Charter would be Comcast’s second industry-reshaping acquisition of the past few years, following the completion last year of its purchase of NBC Universal from GE.

Source: Forbes Business

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Labor Day Sales Deliver Strong Car, Fashion and Electronics Deals
Labor Day Sales Deliver Strong Car, Fashion and Electronics Deals
The first Labor Day Sales 2015 have already launched. Car dealers fully embrace Labor Day sales as they want to clear out inventory. Deals on clothing, matrasses and smaller electronics are also worth considering.
 
 
Facebook M is a Hybrid Personal Digital Assistant inside Messenger
Facebook M is a Hybrid Personal Digital Assistant inside Messenger
M relies on artificial intelligence and human assistance.
 
 
iPhone Users get 30 Day Free Samsung Galaxy Trial
iPhone Users get 30 Day Free Samsung Galaxy Trial
Samsung tries everything to get new customers. Now iPhone user can test a new Galaxy smartphone 30 days for free.
 
 
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft's release schedule for Windows 10 updates is fast paced. The company released three updates within 2 weeks.