Charter Communications To Buy Time Warner Cable For $55 Billion

According to Bloomberg, Charter Communications, the fourth largest cable company in United States looks all set to place a $55 billion bid for its rival and the larger cable operator Time Warner Cable.

time-warner-cable

This is the latest acquisition chapter in the U.S. cable industry. Earlier, Charter Communications expressed interest in buying TWC back in 2013, but couldn’t do much against Comcast, which placed a higher bid for TWC in February 2014. Comcast floundered to fulfill the minimum requirements put forth by U.S. authorities; therefore, the deal was called off in April 2015 after a year of the legal fight. It has certainly re-opened doors for Charter to renew its efforts.

The latest bid placed by Charter Communications is ten times higher than what Comcast was going to pay. However, it pays only 14% premium on the current TWC share price. Reports claim that TWC shareholders are unlikely to object the acquisition in terms of the price offered, but some negotiations are certainly on cards concerning debt.

Apart from Charter, Altice has also expressed interest in TWC, which has sent its share prices up lately. Charter is going to spend $10 billion for buying Bright House Network soon, which is making its shareholders nervous. It will be great to see if Charter Communications can justify its investment in the coming months or not.

Reported By

Leave a Reply

2 Comments on "Charter Communications To Buy Time Warner Cable For $55 Billion"

 

Sort by:   newest | oldest
Esmail
May 27, 2015 10:09 am 10:09 AM

Time Warner’s 89.99$ bundle with 200+ channels and 30 Mbps unlimited wifi with unlimited calling to USA, Canada, Mexico, China and India is currently one of the best offers in the market.

Viranch Damani
May 27, 2015 2:45 pm 2:45 PM

Google Fiber is the best, if its available that is.

wpDiscuz