Entertainment
Charter Buys Time Warner Cable in $55B Deal
A Charter Communications van in Town and Country, Mo. (Jeff Roberson/AP Photo)
(USA Today) – Charter Communications said Tuesday that it is buying Time Warner Cable for $55.3 billion, forging ahead with its theory that broadening its presence nationally would provide the leverage it needs to fend off the challenges in the turbulent pay-TV industry.
Including Time Warner Cable’s debt that Charter will assume, the deal is valued at about $79 billion.
Controlled by billionaire industry legend John Malone, Charter is making its boldest move yet to pursue a company that is much larger in revenue and market share, merely weeks after Comcast failed in its bid to buy Time Warner Cable. Charter also sought to buy Time Warner Cable at a lower price last year, only to be outbid by Comcast.
Charter will pay $195.71 per share in the cash-and-stock deal — $100 of it in cash with the rest in Charter shares. The offer is based on Charter’s 60-trading day volume weighted average price. Charter also will provide Time Warner Cable shareholders an option to receive $115 in cash and shares of the new company.
