Menu
Charter Communications confirms bid to buy Time Warner Cable

Charter Communications confirms bid to buy Time Warner Cable

The companies expect to close the deal by the end of 2015.

Charter Communications has confirmed it plans to acquire of Time Warner Cable, a deal that if approved would create the second-biggest cable operator in the U.S.

Cable operators are under pressure from a new generation of companies such as Netflix that offer competing video services, and Charter is hoping scale will help it compete more effectively. It values the deal at US$78.7 billion including assumed debt.

Charter also plans to acquire Bright House Networks, a smaller cable company. If successful, the deals would make Charter, currently the fourth-biggest cable company in the U.S., second only to Comcast. The combined entity would serve 23.9 million customers in 41 states.

This is Charter's second attempt to buy Time Warner Cable. After its first offer was rejected, competing cable operator Comcast in 2014 made its own bid. That deal, however, also fell apart in April after the U.S. Federal Communications Commission referred the proposed acquisition to a hearing in front of a judge. The move effectively killed that plan because of the time and effort it would have taken.

The U.S. Department of Justice had also reportedly been leaning toward blocking the merger on antitrust grounds, should it have received FCC clearance.

Charter is hoping to convince regulators that this deal makes more sense, and will result in faster broadband speeds, better video products including more high definition channels, more affordable phone service, and more competition for consumers and businesses, it said. But irrespective of how it's pitched, it is far from a sure thing.

(Marc Ferranti in New York contributed to this report)

Send news tips and comments to mikael_ricknas@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuestelecommunicationCarriersTime Warner CableCharter Communications

Featured

Slideshows

Tech industry comes out in force as Lancom turns 30

Tech industry comes out in force as Lancom turns 30

A host of leading vendors and customers came together to celebrate the birthday of Lancom Technology in New Zealand, as the technology provider turned 30.

Tech industry comes out in force as Lancom turns 30
The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Show Comments