Comcast buys Time Warner Cable for $45 billion

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NEW YORK — Comcast said Thursday it had agreed to buy Time Warner Cable for $45 billion in a deal that would combine the two biggest cable companies in the United States.

If the deal is approved, the combined group will be the country’s dominant provider of television channels and Internet services.

Time Warner Cable owners will be offered 2.875 Comcast shares for each share they own, valuing Time Warner Cable at about $158.82 per share.

The two companies expect the merger to take effect by the end of the year, but regulators are likely to take a close look at the potential impact on consumers.

To address those concerns, Comcast said it would divest about 3 million subscribers. But it would still have about 30 million customers.

The proposed deal ends months of jockeying for control of Time Warner Cable, the second biggest U.S. supplier of cable television, with about 11 million subscribers in cities such as New York and Los Angeles. Smaller rival Charter wanted to buy Time Warner Cable, indicating last month it was ready to pay about $130 per share.

Time Warner Cable called that price “grossly inadequate” and countered with a suggestion of $160 per share, very close to Comcast’s offer. Comcast had cast a shadow over the negotiations, and had reportedly held talks with Charter about how to divvy up Time Warner Cable’s territories.

By swallowing Time Warner Cable on its own, Comcast will gain even more leverage over the country’s marketplace for television, broadband Internet and phone services. Comcast has about 23 million television subscribers in markets like Philadelphia, where it is headquartered.

With millions more subscribers, Comcast will add muscle in its negotiations with cable channel owners like The Walt Disney Company and Time Warner, the parent company of this website. (Time Warner Cable was spun off from Time Warner in 2009 and no longer has any connection to the owner of CNN, HBO and Warner Bros.)

6 comments

  • Allen

    Wow… this is going to be bad. Time Warner already has terrible customer service and Comcast is famous for having the worst customer service of almost any company in the U.S.. It is time to start searching for another provider… wait, they will be the only game in town. So much for our internet quality and speeds getting better. They will have no reason at all to improve since there will be no viable alternative.

    • Mike

      Pray to the gods of Google to bring their fiber internet and TV to your area. It’s about all you can do if this goes through. The good thing is this will likely get shot down by the regulators as this would crush competition. The satellite providers don’t have the market share to really compete with a cable company the size this one would be.

  • JustMe

    This is not good..Not for businesses nor individuals..A monopoly that will then drown out all other competition..Is it all part of a big plan? Read up on Standard Oil and John D Rockefeller..Imagine every drop of oil, every well, every refinery and every gas station being owned by one person..So much for your options and choices folks..It’s do as I say and pay the price or else..Have a nice life out in the cold, so to speak..

  • michelle

    Well…is this any surprise? No. I don’t have any cable at all and quite frankly I enjoy not having to watch commercials 45 minutes out of an hour or the poor quality of choice in what to watch. It’s a ripoff anyway. Try turning the tv off sometimes and you will see how much time you have for family and other things. I dont miss is at all.

  • Jennifer

    “Thank-You-God!!!!” I understand No One Can realize it yet… But, However…THIS COULD be the Greatest Thing that EVER Happened to the Pathetic Time/warner monopoly!!! I Personally am CANCELLING ALL Services after 32 years(@prime pay rate!!!!) regardless!!!! WHO CARES?????

  • dewey

    a monopoly is when you have NO OTHER CHOICE….you can get DirecTV or Dish here, so that eliminates the monopoly you all speak of…as far as Comcast purchasing TW, I’m ecstatic…fastest internet speeds without a cap without being on Verizon

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