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Time Warner Cable To Be Acquired By Charter Communications For $78 Billion!

Posted by: on May 26, 2015 | No Comments

Yesterday we seen reports that Stamford-based Charter Communications, Inc were planning to acquire Time Warner Cable, Inc for a whopping $55 billion. Well today the actual acquisition price tag is much higher. The two cable companies agreed to enter into an agreement for purpose merger of $78 billion! The deal values Time Warner Cable at $78.7 billion based on reports. This deal will also include the sixth largest cable operator Bright House Networks, based on an agreement between Bright House and Charter Communications which was signed on March 31, 2015. This initial agreement between Charter and Bright House opens the door for a $10.4 billion acquisition of Bright House within the new new acquisition of Time Warner Cable. With this merger between Charter Communications, Time Warner Cable and Bright House Networks will create new services for a now purpose 23.9 million subscribers in 41 states. Comcast still holds a slight lead of customers with 27.2 million over the New Charter Corporation.

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Charter President and CEO Tom Rutledge said in a statement, “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, In addition, we will drive greater competition through further deployment of new competitive facilities-based Wi-Fi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large , small and medium sized business services markets.”

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Mr. Rutledge will be offered a new five-year deal to stay on to be the President and CEO of the New Charter Corporation. This new deal will definitely benefit media mogul John Malone, whose Liberty Broadband Corp is charters largest shareholder. In the deal Liberty Media is acquiring $5 billion in new Charter stock based on reports online. That’s a great pay day for Liberty Media with today’s news between Charter and Time Warner Cable. This year we already seen the merger of Verizon and AOL at $4.4 billion but with today’s news, Time Warner Cable and Charter explode  out the gate with one of the largest deals so far in 2015 with their $78 billion merger agreement. Without doubt a awesome deal today, however, only time will time how successful this deal will be and if the deal will be good for cable customers. share your thoughts on the Time Warner Cable and Charter Communications deal in the comments

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