swatkats
Skilled
Charter Communications is buying Time Warner Cable in a deal that values the latter, larger company at $78.7 billion. The two firms will merge together under the newly created parent company New Charter, which will become the second biggest cable provider in the US after Comcast. A separate acquisition by Charter of the smaller cable company Bright House Networks for $10.4 billion means that the new company will soon have 23.9 million customers in 41 states.
“Charter will provide $100.00 in cash and shares of a new public parent company (‘New Charter’) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding,” Charter explains in a press release. “The deal values each Time Warner Cable share at approximately $195.71 based on Charter’s market closing price on May 20, or approximately $200 based on Charter’s 60-trading day volume weighted average price.”
It will be interesting to see how the Federal Communications Commission and the Department of Justice’s antitrust regulators view this proposed merger. While both were very skeptical of a merger between Comcast and TWC, they might be more tolerant of a merger between TWC and Charter as long as Charter offers some key concessions.
This is the fourth time Charter has tried to acquire Time Warner Cable in the last three years, with this week's deal only made possible after Comcast abandoned its own $45 billion merger with Time Warner Cable due to resistance from regulators. Charter's cash-and-stock deal — valuing Time Warner Cable at $195 a share — will still have to be approved by regulators, but according to reports from Bloomberg and The Wall Street Journal, FTC boss Tom Wheeler recently called the heads of both Charter and Time Warner Cable to assure them that despite what happened with Comcast, there isn't an outright ban on such mergers. Even if the deal is approved, Comcast will remain the biggest US cable provider with around 27 million customers.
Source:
This won't go through. Looks like Charter forgot DOJ and FCC
“Charter will provide $100.00 in cash and shares of a new public parent company (‘New Charter’) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding,” Charter explains in a press release. “The deal values each Time Warner Cable share at approximately $195.71 based on Charter’s market closing price on May 20, or approximately $200 based on Charter’s 60-trading day volume weighted average price.”
It will be interesting to see how the Federal Communications Commission and the Department of Justice’s antitrust regulators view this proposed merger. While both were very skeptical of a merger between Comcast and TWC, they might be more tolerant of a merger between TWC and Charter as long as Charter offers some key concessions.
This is the fourth time Charter has tried to acquire Time Warner Cable in the last three years, with this week's deal only made possible after Comcast abandoned its own $45 billion merger with Time Warner Cable due to resistance from regulators. Charter's cash-and-stock deal — valuing Time Warner Cable at $195 a share — will still have to be approved by regulators, but according to reports from Bloomberg and The Wall Street Journal, FTC boss Tom Wheeler recently called the heads of both Charter and Time Warner Cable to assure them that despite what happened with Comcast, there isn't an outright ban on such mergers. Even if the deal is approved, Comcast will remain the biggest US cable provider with around 27 million customers.
Source:
- http://www.theverge.com/2015/5/26/8659389/charter-buys-time-warner-cable
- http://bgr.com/2015/05/26/charter-time-warner-cable-merger-78-7-billion/
This won't go through. Looks like Charter forgot DOJ and FCC
