Comcast Corporation (CMCSA) reportedly to acquire Time Warner Cable for $45 billion
Comcast Corporation (NASDAQ:CMCSA) has reportedly agreed to acquire Time Warner Cable, according to CNBC. This acquisition would be one of the largest in history. The acquisition would be at about $158.82 per share, which is a 17% premium on Wednesday’s closing price of $135.51, thus making the deal worth around $45 billion.
This deal would be subject to regulatory approval by the Federal Communications Commission since it would combined the largest and second largest U.S. cable companies.
Charter Communications was also working on a deal, but made an offer at around $135 per share, which was considered too low by Time Warner Cable’s management team.
There are critics of the deal that believe a merger would reduce competition and would not offer consumers better terms for cable packages.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry