Time Warner Cable (TWC) has leaped into the arms Charter Communications in a merger valued at $55 billion, confirming previous rumors. That's considerably more than the $45 billion Comcast proposed to pay for TWC in a controversial deal that it eventually called off. Charter said that the merger will "create a leading broadband services and technology company serving 23.9 million customers in 41 states." Time Warner Cable rejected a similar offer back in 2014, but Charter sweetened the deal considerably this time around. The deal values Time Warner Cable at $75.7 billion.
TWC is the nation's second largest cable operator after Comcast, while Charter Communications sits in fourth place. The terms of the deal mean that Charter would also absorb Bright House Networks, a smaller US operator. If the whole thing comes off, Charter would be the nation's second largest operator with 24 million customers, compared to 27 million for Comcast. However, the deal still needs to be approved by regulators, and the FCC was reportedly dead set against Comcast's acquisition of TWC.
That said, FCC Chairman Tom Wheeler told TWC that he wasn't necessarily against any future deals with other players, according to the WSJ. There were much larger competition concerns with a Comcast and TWC merger, which would've created a dominant force, leaving many consumers with only one option for cable and internet. The size of the merger could still be a concern, however, and if the deal doesn't come off, Charter could end up owing its larger rival nearly $2 billion in cancellation fees.
Filed under: Internet
Source: Charter Communications
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