Charter Communications buys Time Warner Cable for $55bn | M&M Global

Charter Communications buys Time Warner Cable for $55bn

Charter Communications has agreed to buy Time Warner Cable for $55.1bn in cash and stock.

Time Warner HQ

The deal will result in a major rival for Comcast, the biggest operator in the US cable and broad and market. It had its own bid rejected by Time Warner Cable last year following heavy opposition from consumers and lawmakers concerned about the amount of power it would give one company in pay-TV and internet services.

Charter is also acquiring Bright House Networks, a smaller cable operator, for $10.4bn. This will be merged into the combined entity, according to reports.

Subject to regulatory approval, the deal will result in Charter’s customer base quadrupling to approximately 24 million, compared to Comcast’s 27 million.

It is believed that Charter’’s CEO Tom Rutledge will lead the merged company.

In July 2014, Rupert Murdoch’’s 21st Century Fox offered $80bn to take over Time Warner but withdrew the bid after Murdoch said that the company “refused to engage” with them.

Time Warner Cable shares closed at $171.18 on 25 May.

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