Menu
Comcast buying Time Warner Cable in $45.2 billion all-stock deal

Comcast buying Time Warner Cable in $45.2 billion all-stock deal

The merger will allow customers of each company to profit from the other's innovations, they said

Comcast will acquire Time Warner Cable in a US$45.2 billion all-stock deal, the companies said Thursday.

The merger will accelerate innovation and, in time, allow customers of both companies to profit from the other's services, they said. The services Comcast will contribute include 50,000 video-on-demand choices on television, a further 300,000 available for streaming on XfinityTV.com, and its X1 cloud DVR (digital video recorder). Time Warner Cable will add its StartOver service for skipping back to the start of a live program in progress and LookBack, which allows customers to watch programs up to three days after they air. The merger will also add 30,000 new Wi-Fi hotspots to those already available to Comcast customers.

For business customers, the companies' combined bandwidth and reach will improve their ability to offer high-performance point-to-point and multi-point Ethernet services and cloud-based managed services, they said.

Comcast said building a national platform from the two companies' networks will allow it to realize operating efficiencies and economies of scale of around US$1.5 billion.

The deal will bring Comcast around 11 million new managed subscribers, although it said it is prepared to divest around 3 million of those to reduce competitive concerns, leaving the combined company with around 30 million managed subscribers in total. Time Warner Cable owns cable systems in New York City, Southern California, Texas, North Carolina, South Carolina, Ohio, and Wisconsin, among others.

While Time Warner Cable will account for about 27 percent of the company's cable customers, its shareholders will end up with approximately 23 percent of the combined entity. Neil Smit, president and CEO of Comcast Cable and an executive vice president of Comcast, will head the new cable company.

The companies expect to close the deal by the end of the year, subject to approval from shareholders and regulators.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersTime Warner CablecomcastMergers and acquisitionsbroadband

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments