US: Charter confirms acquisition of Time Warner Cable in $55 billion deal

Charter Communications, the No. 3 cable TV operator, offered to buy No. 2 Time Warner Cable Inc for $56 billion on Tuesday but immediately ran into questions about whether regulators would agree to the combined company, which would control a big swath of the cable and Internet markets.

The union of the two companies would compete against cable market leader Comcast, confront the increased popularity of streaming services, and mark a huge step toward industry consolidation, long advocated by cable pioneer John Malone, Charter’s biggest shareholder.

The merger partners, which promised better access to broadband Internet for consumers, faster speeds and more public Wi-Fi networks, nonetheless could face regulatory obstacles that helped sink Comcast’s earlier bid for Time Warner Cable.

“With today’s announcement, we have delivered on our commitment to maximizing shareholder value,” Time Warner Cable CEO Rob Marcus said.

Charter currently has about 4.1 million TV subscribers and 4.9 million broadband subscribers.

Through the transactions announced on Tuesday, New Charter will have 17 million residential TV subscribers and 18.8 million on the broadband side, making it a counterweight to Comcast, which has about 22 million subscribers.

Full content: The New York Times

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