[opendtv] Comcast agrees to buy Time Warner Cable

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 13 Feb 2014 07:16:51 -0500

This could get interesting. 

Is this, as Bert might contend, "the mating of dinosaurs," or is Comcast 
bulking up for the bigger war to come with Verizon and AT&T?


By Shalini Ramachandran and Dana Cimilluca

Comcast Corp. has agreed to buy Time Warner Cable for $45 billion in stock, a 
deal that would combine the nation’s two biggest cable operators, according to 
people familiar with the situation.

The boards of both companies have approved the deal, which will be announced 
Thursday morning, one of the people said.

With the proposed deal, Comcast CMCSA +0.44%  almost certainly ends an eight 
month takeover battle for TWC TWC +0.30% waged by fourth-biggest cable operator 
Charter Communications Inc. CHTR -0.24%   and its biggest shareholder, Liberty 
MediaCorp. LMCA +0.87%   , whose chairman is cable pioneer John Malone.

By negotiating the merger, Comcast Chief Executive Brian Roberts ensures his 
dominance of the U.S. cable industry will be maintained. But the transaction 
would face lengthy regulatory review.

In the deal, Time Warner Cable shareholders will receive $158.82 a share in 
stock for their shares, about $23 a share above where TWC has been trading. 
Charter has made three offers, the most recent of which was valued at $132.50, 
all of which were rejected by TWC as too low. Time Warner Cable Chief Executive 
Rob Marcus had said TWC wanted $160 a share.Charter’s pursuit of TWC, which 
began after Liberty bought a 27% stake in Charter about a year ago, had raised 
the possibility that Malone would emerge as a rival to Roberts. Malone once led 
the U.S. cable industry but sold his previous cable firm, Tele-Communications 
Inc. in 1999.

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