Staff Writer
On Wednesday, February 12th, CNBC market news analyst David Faber confirmed that Comcast is set to buy Time Warner Cable in an all-stock deal for $159 per share.
The deal will be made on Thursday morning, and is estimated to total more $44 billion. The merger is expected to be completed by the close of the year. What results from this deal is the largest cable company the U.S. has ever seen, with over 33 million subscribers nationwide.
Charter Communications is currently in talks with Comcast, hoping to acquire some of their newly-acquired market areas. Brian Stelter, reporting for CNN, stated on Twitter: “For Comcast, the crown jewel of [Time Warner Cable] is the New York City market. Soon [Comcast] will have its 30 Rock studios AND the cable pipes beneath.”
In January, Charter had sought acquisition of Time Warner alone, offering them $132.50 per share, placing the company’s proposed value at $37.8 billion. The deal was dismissed by Time Warner as “grossly inadequate,” adding that it would only consider a deal at $160 per share.
As for Comcast’s decision to share their expanded customer base with Charter, the company has stated that because the two providers do not serve overlapping markets, their combination will not affect competition for subscribers. AT&T and Verizon will still provide competition of their own – both companies have been growing rapidly, with total subscribers in 2013 totaling at more than 5 million each.
Comcast’s acquisition of Time Warner is the second of two major deals in the last two years, having acquired NBCUniversal from General Electric in February 2013.
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