Charter Communications has said it will buy fellow US cable giant Time Warner Cable in a combined cash and stock deal. The combined power of the two entities could challenge market leader Comcast.
Charter Communications announced Tuesday it would buy Time Warner Cable (TWC) in a $78.7-billion (72.1-billion-euro) deal involving a cash payment and the sale of shares.
A joint statement by the two cable companies said each TWC share would be worth about $195.71 based on Charter's closing price on May 20.
Charter is the fourth largest US cable provider. In buying the number two on the domestic market and also adding in the smaller Bright House Network, the new entity looks likely to form a giant with enough heft to challenge Comcast's current market leadership.
Following the trend
Seeking to arrange a sale after a deal with Comcast itself fell through due to objections by regulators, Time Warner Cable had earlier also held exploratory talks with French competitor Altice.
The French company had just made headlines in the US market by buying up 70 percent of Suddenlink Communications for $9 billion.
The Charter-TWC deal comes at a time when US cable and Internet firms are looking to save costs and gain pricing advantages through a host of consolidations.
hg/pad (AFP, Reuters)