YOU ARE AT:Network InfrastructureCharter going for $55B buy of Time Warner Cable

Charter going for $55B buy of Time Warner Cable

Update, 9:24 a.m. CST, May 26: Charter Communications today confirmed reports it is making a play to purchase Time Warner Cable, the second-largest cable provider in the U.S. behind Comcast, for $55 billion.

Charter also is working to purchase provider Bright House Networks, which would be rolled into the new combined company, pending federal regulatory review.

Charter will pay $195.71 per share with options of $100 or $115 per share, with the remainder coming in stock options, according to Bloomberg Business.

Comcast dropped bid to buy Time Warner, now Charter trying again after failed TWC buy in 2013

Charter Communications is working toward an acquisition of Time Warner Cable, which would see a consolidation of the third- and second-, respectively, largest cable companies in the country, according to multiple reports.

The deal, which also includes a bid to buy smaller provider Bright House Networks, is worth a reported $55 billion.

Comcast is the largest cable television provider in the U.S. A merged Charter and Time Warner Cable would give the company nearly 19 million Internet customers and 17 million TV customers.

CNN Money reports: “This roll up will give the combined company more leverage while negotiating with channel owners like Disney and while competing with new powerhouses like Netflix.”

A potential Charter-Time Warner merger would be subject to federal regulatory review with an eye on quelling any possible monopolistic business dealings.

Last year the feds rejected a bid from Comcast to purchase Time Warner Cable. Comcast settled on a purchase price of $45.2 billion before the Federal Communications Commission forecasted the deal would be rejected.

Reports indicate that the Charter bid is based on a $195 per share value for Time Warner stock. Charter previously tried to buy Time Warner Cable in 2013.

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Sean Kinney, Editor in Chief
Sean Kinney, Editor in Chief
Sean focuses on multiple subject areas including 5G, Open RAN, hybrid cloud, edge computing, and Industry 4.0. He also hosts Arden Media's podcast Will 5G Change the World? Prior to his work at RCR, Sean studied journalism and literature at the University of Mississippi then spent six years based in Key West, Florida, working as a reporter for the Miami Herald Media Company. He currently lives in Fayetteville, Arkansas.