Charter buying Time Warner Cable in $55.33B deal
The approval needed before the deal is official.
NEW YORK (AP) - Charter Communications will spend $55.33 billion to acquire Time Warner Cable. It's a cash-and-stock deal that would instantly create one of the largest pay-television and broadband operators in the U.S.
As part of the agreement, Charter will also buy Bright House Networks for more than $10 billion.
Charter will provide $100 in cash and shares of a new public parent company equal to 0.5409 shares of Charter for each outstanding Time Warner Cable Inc. share. The transaction values each Time Warner Cable share at about $195.71.
The companies on Tuesday valued Time Warner Cable at a total of $78.7 billion. Shares of Charter Communications Inc. are up more than 3 percent in premarket trading.
Time Warner operates in Louisville. Federal regulators would still have to approve the merger. Comcast pulled its offer to buy Time Warner in April after regulators expressed concerns the deal would be anti-competitive.
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