Time Warner Cable Set to Merge with Charter
Merger with Time Warner Cable isn't the only M&A activity Charter Communications has planned.
A new giant in the U.S broadband and cable landscape is about to be born as Time Warner Cable merges with Charter Communications in a $78.7 billion deal.
Additionally, Charter is also pushing forward on a $10.4 billion deal to acquire Bright House Networks.
At this point, the merged company is being referred to as "New Charter" and will be run by Charter's current president and CEO, Tom Rutledge. The deal is subject to regulatory approvals and is expected to close by the end of 2015.
As part of the disclosed terms of the proposed merger, Charter will provide $100.00 in cash and shares of the New Charter company, equivalent to 0.5409 shares of Charter or each Time Warner Cable share outstanding.
In total, when the deal is closed, the combined Charter, Time Warner Cable and Bright House company will have 23.9 million customers across 41 states. Company executives expect that the combined company will be able to provide better service, performance and innovation than ever before.
"With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully–featured voice products, at highly competitive prices," Tom Rutledge, President and CEO of Charter Communications, said in a statement. "In addition, we will drive greater competition through further deployment of new competitive facilities-based WiFi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large, small and medium sized business services marketplace."
The Charter Time Warner Cable merger follows a failed $45 billion bid in 2014 by Comcast to acquire Time Warner. The Comcast Time Warner deal was rebuffed by regulators over anti-competitive concerns.
A Wall St. Journal report on May 21, claimed that Federal Communications Commission Chairman Tom Wheeler called the CEOs of both Charter and Time Warner Cable to emphasize that the U.S. Government would not block all cable mergers.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.