Thursday, February 13, 2014

Comcast will reportedly buy Time Warner Cable for $45 billion

The cable industry could be getting significantly smaller. According to CNBC reporter David Faber's sources, Comcast will announce that it is buying Time Warner Cable tomorrow morning. 
In a statement to The Verge, Time Warner Cable said it was not confirming any media reports at this time.
reporting that the deal will take place. The all-stock deal will reportedly be at $159 per share of Time Warner Cable, a deal with a market value of $44.2 billion according to Barron's calculationsThe Wall Street Journal says the companies will merge "in a $45 billion deal." Faber suggests that a Comcast / Time Warner Cable combination will get a tough review from the Federal Communications Commission, as you might expect with a telecom merger of this magnitude. According to Faber, Comcast is willing to shed some 3 million of its subscribers in an attempt to placate regulators.
If Faber's sources are correct, Comcast has managed to snatch Time Warner Cable right out from under a smaller cable company, Charter Communications. Charter has repeatedly tried and failed to buy TWC, offering $37.4 billion for the company just last month. While that was allegedly a lowball offer designed to draw shareholder attention, Charter reportedly brought in Comcast to help seal the deal with a joint proposal. Now, though, it appears Comcast may have decided to swallow TWC whole.

Source:http://www.theverge.com/2014/2/12/5406936/comcast-will-reportedly-buy-time-warner-cable

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