|Report says Comcast makes Time Warner Cable deal
Comcast has agreed to a US$45-billion stock deal to buy Time Warner Cable, a move that would merge the two biggest cable operators in the United States, US media reported.
The boards of both companies have approved the deal and an announcement will be made on Thursday morning, The Wall Street Journal said.
If, as expected, the deal is confirmed, the transaction would mark Comcast's triumph over America’s fourth-largest cable operator, Charter Communications and its biggest shareholder, Liberty Media Corp.
Comcast, which owns prominent entertainment company NBCUniversal, parent of the NBC broadcast network, is the dominant force with nearly 22 million video subscribers, compared to Time Warner Cable's estimated 12 million.
The Wall Street Journal said Time Warner Cable shareholders will receive US$158.82 a share in stock for their shares under the deal, about US$23 a share above where TWC has been trading.
Charter has made three offers, its most recent valued at US$132.50 a share, which was rejected as too low compared to TWC's goal of US$160 a share.
The Journal said TWC had long seen Comcast as a preferred merger partner, saying it approached Comcast about a deal last year in hopes of sidelining Charter.—AFP