Comcast Corp to merge with Time Warner Cable in MONSTER $45bn deal
Takeover deal will create 30 million customer über-cableco
Comcast Corp plans to merge with Time Warner Cable in an all-stock deal priced at $45.2bn.
The move will bring together the two biggest cable outfits in the US, if the takeover is waved through by regulators in the country.
Comcast said it hoped to officially tie the knot with Time Warner Cable by the end of this year.
The giant carrier said:
This transaction will create a leading technology and innovation company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.
In other words, Comcast needs Time Warner Cable to hold sway over its competitors in the market.
Comcast, hyper-aware of regulatory heat, said it planned to offload some of its customer base.
The cable co said that it would divest systems serving around three million of its subscribers. It's expected to bag around eight million Time Warner Cable customers once the proposed transaction closes.
The company's total subscriber numbers will then sit at around 30 million, Comcast said.
Time Warner Cable investors will be paid $158.82 per share, based on Comcast's most recent closing price. ®