Charter Communications announced today it will merge with Time Warner Cable and will also buy Bright House Networks.
If approved, the deal will form a new company rivaling Comcast, which recently cancelled its planned merger with Time Warner after the Justice Department and the FCC raised concerns.
The Wall Street Journal reports the deal is worth $55 billion, “The acquisition by Charter, which is backed by Mr. Malone’s Liberty Broadband Corp., would vault the cable operator into the ranks of the biggest U.S. broadband and pay-television companies.”
Charter’s deal for Bright House is valued at $10.4 billion. The agreement provides for Charter and Advance/Newhouse (a parent of Bright House) to form a new partnership with Charter owning between approximately 86 and 87 percent and Advance/Newhouse owning approximately 13 and 14 percent.
Charter promises the deal will serve 23.9 million customers in 41 states 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.”
“With today’s announcement, we have delivered on our commitment to maximizing shareholder value,” said Robert D. Marcus, chairman and CEO of Time Warner Cable. “This agreement recognizes the unique value of Time Warner Cable, and brings together three great companies that share a common philosophy of strong operations, great products, robust network investment and putting customers first. This combination will only accelerate the great operating momentum we’ve seen over the last year and provide enormous opportunities for our 55,000 dedicated employees. We remain wholly committed to bringing the very best experience to our residential and business customers coast to coast.”[NPR]