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Time Warner Cable To Be Bought By Charter Communications





Time Warner Cable To Be Bought By Charter Communications Time Warner Cable To Be Bought By Charter Communications

Charter Communications has agreed to buy media giant Time Warner Cable in a deal which values the company at $78.7bn (£52bn).

The proposed deal would combine the second and third largest cable operators in the US.

Charter is also buying Bright House Networks, another cable operator, for $10.4bn.

The combined firm will be a broadband services and technology company serving 23.9 million customers in 41 states.

US cable companies are facing stiff competition from online service providers like Amazon and Netflix, as users increasingly choose to stream content over the internet at a time of their choosing.

Cable companies are responding by trying to cut costs and improve their offering.

The new merged cable giant will compete with US cable market leader Comcast, which currently has about 27 million customers.

Charter's takeover move comes a month after Comcast abandoned its plan to buy Time Warner Cable after heavy pressure from regulators.

The latest deal is also likely to come under regulatory scrutiny, and the Federal Communications Commission (FCC) quickly issued a statement.

"The FCC reviews every merger on its merits and determines whether it would be in the public interest," FCC chairman Tom Wheeler said.

"In applying the public interest test, an absence of harm is not sufficient. The commission will look to see how American consumers would benefit if the deal were to be approved."

Liberty Broadband, which currently owns about a quarter of Charter, is expected to own about 20% of the new company.

The deal values Time Warner Cable at $195.71 per share.


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Time Warner Cable To Be Bought By Charter Communications
Kenneth Okonkwo

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