Charter Communications confirmed Tuesday morning that it has officially put in a bid to buy its larger rival, Time Warner Cable. In addition, the cable provider also announced that it would buy Bright House Networks as well.
The merge with TWC values the company at $78.7 billion, with each share of TWC valued at $195.71. Charter is also acquiring Bright House Networks for $10.4 billion.
“The teams at Charter, Time Warner Cable and Bright House Networks are filled with the innovators of our industry,” Charter CEO Tom Rutledge said in a statement. “Representatives of each of these companies have invented some of the most revolutionary communications products ever created; innovations like video on demand, VOIP phone service, remote storage DVR, cable TV through an app, downloadable security and the first backward-compatible, cloud-based user interface. That spirit of innovation will live on, and it will create real benefits and great long-term value for the customers, shareholders and employees of all three companies.”
This move comes as American cable providers continue to consolidate as more and more grow nervous over Americans cutting the cord, in favor of cheaper online TV services and set-top devices like Roku and Apple TV. It also comes just weeks after Comcast ended its attempt to take over TWC for $45.2 billion after concerns that the government regulators would not approve of the deal.
Should the TWC/Charter deal be approved, the company would be renamed New Charter. Since Charter is already a smaller company than Comcast, the deal seems more likely to come through. If it does, Charter’s consumer base would jump to 24 million customers, making it the second largest in the country, notes The New York Times.
“With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully–featured voice products, at highly competitive prices,” Rutledge added. “In addition, we will drive greater competition through further deployment of new competitive facilities-based WiFi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large, small and medium sized business services marketplace. New Charter will capitalize on technology to create and maintain a more effective and efficient service model.”
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