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Charter Communications, the fourth largest cable company in the United States, is set to acquire Time Warner Cable for US$55.1 billion. Such deal would elevate Charter among the top three companies, jumping to No. 2 in the shrinking and competing pay TV and broadband industry. The company would also merge with Bright House Networks. With BHN and TWC, Charter would almost quadruple the number of customers to 23 million (from 5.9 million subscribers). Currently, Comcast has the lead with 27 million customers. The trio would have to confront government approvals to make this merger a reality.
Unlike the failed merge between Time Warner Cable and Comcast, a deal between TWC and Charter seems more likely. Tom Wheeler, FCC Chairman, told the TWC and Charter CEOs the decision taken by the FCC about the proposed and failed Comcast-TWC merger doesn’t mean it will oppose any upcoming deals between other cable and Internet providers.
Charter would pay about $195 per share to buy Time Warner Cable. The deal may be announced tomorrow.
[Sources]: Bloomberg: Charter Nears Deal to Buy Time Warner Cable for $55.1 Billion; CNN Money: Charter set to announce Time Warner Cable acquisition.