Time Warner Cable accepts Comcast's acquisition deal: Report

Time Warner Cable accepts Comcast's acquisition deal: Report

Summary: Comcast is said to have agreed to pay $44 billion to acquire America's third-largest cable company, Time Warner Cable.

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Comcast is expected to announce its acquisition of the Time Warner Cable (TWC) for $44 billion.

Initially reported by CNBC, the deal, which is due to be officially announced on Thursday, US time, will see the creation of the largest cable provider in the US with over 33 million subscribers — 14 million of which will come from TWC.

However, it is expected that Comcast will divest itself of 3 million subscribers in order to avoid any regulatory obligations as a result of the acquisition.

The deal will also see TWC's recently acquired business DukeNet Communications, which was purchased for $600 million, join the new entity. The initial reason for this takeover was so TWC could expand its fibre offering to North Carolina and South Carolina, including five other states across the US eastern seaboard and the south-east.

This announcement will see the end of a long battle for America's third-largest cable company, which involved Liberty Media and Charter Communications.

At one point, Charter Communications was trying to negotiate a $61.3 billion deal following more than six months in talks with TWC. But after no deal was made, Charter said it was led "to determine there is no genuine intent from Time Warner Cable's management and board of directors to engage in a merger agreement". The company's chief executive Thomas Rudledge wrote in a letter to TWC chief executive Robert Marcus dated January 13 that it will "remain open to real engagement".

This takeover will be the latest for Comcast to add to its growing portfolio. Last year, the cable giant bought General Electric's remaining stake in NBC Universal for $16.7 billion, which included 30 Rockefeller Plaza in New York and CNBC's headquarters in New Jersey.

Topics: Networking, Tech Industry

About

Since completing a degree in journalism, Aimee has had her fair share of covering various topics, including business, retail, manufacturing, and travel. She continues to expand her repertoire as a tech journalist with ZDNet.

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  • Net neutrality

    If any doubted the need for strong net neutrality legislation, this acquisition drives it home more pointedly. Were seeing even more consolidation in the ISP market, with fewer players playing as gatekeepers to more and more Americans' internet experience.
    dsf3g