Charter Communications has agreed to buy media giant Time Warner Cable in a cash and shares deal worth $78.7bn.
The cash element is worth $55bn, with the rest covered by Charter shares.
The new company, which will also include Bright House networks, will be a broadband services and technology company serving 23.9 million customers in 41 states.
“The combination of Charter, Time Warner Cable and Bright House will create a leading broadband services and technology company serving 23.9 million customers in 41 states. The announced transactions will drive investment into the combined entity’s advanced broadband network, allow for wider deployment of new competitive facilities based WiFi networks in public places, and the footprint expansion of optical networks to serve the large marketplace of small and medium sized businesses,” the Company release said.
It aims to compete with US cable market leader Comcast. US cable and internet companies are facing stiff competitive pressure and are trying to cut costs and attract new customers. The deal values Time Warner Cable shares at $195.71.
“The teams at Charter, Time Warner Cable and Bright House Networks are filled with the innovators of our industry. Representatives of each of these companies have invented some of the most revolutionary communications products ever created; innovations like video on demand, VOIP phone service, remote storage DVR, cable TV through an app, downloadable security and the first backward-compatible, cloud-based user interface. That spirit of innovation will live on, and it will create real benefits and great long-term value for the customers, shareholders and employees of all three companies,” said Tom Rutledge, President and CEO of Charter Communications.
“With today’s announcement, we have delivered on our commitment to maximizing shareholder value,” said Robert D. Marcus, Chairman and CEO of Time Warner Cable.
