Comcast, the largest cable and internet provider in the United States as well as third largest in telephone services, has made plans to purchase and merge with Time Warner through a $45 Billion deal outlined in the excerpt from their announcement below. This deal makes Comcast significantly larger as they take over all of Time Warner’s customers after the merger. This deal still has to make it through anti-trust (A law that recently gave AT&T trouble in purchasing T-Mobile) as well as shareholder approval in order to fully go through.
In a news post by Bloomberg, they outlined the deal;
Comcast Corp. agreed to acquire Time Warner Cable Inc. for $45.2 billion, combining the two largest U.S. cable companies in an all-stock transaction.
Investors of New York-based Time Warner Cable will receive 2.875 Comcast stock for each of their shares, the companies said in a joint statement today. The deal values each Time Warner Cable share at $158.82, or 17 percent more than its close yesterday. The transaction, subject to approval by stockholders and regulators, is expected to be completed by the end of 2014.
Essentially, if the deal goes through Comcast will gain over 11 million customers, giving the merged company over 30 million subscribers across the United States. It is worth noting that in order to reduce competitive concerns, Comcast may divest systems that serve approximate 3 million managed subscribers. There have yet to be any announcements how this will affect services (if at all) after the merger, but as the deal likely won’t go fully through for over 10 months, the news should come within the next few months.
This merger is a huge deal for Comcast, giving it an even larger portion of the market, so it’s being speculated that regulations may prevent the deal from happening.
Question for our readers; Do you have Comcast or Time Warner?