Charter Communications, Inc. (NASDAQ:CHTR) has made a $61.3 billion offer to buy out Time Warner Cable. Charter Communications is offering $132.50 per share — Charter would pay $83 per share of Time Warner Cable and $49.50 per share in Charter stock. The offer price represents only a $0.10 per share premium for Time Warner Cable’s closing price today.
Charter made their offer public because they have been denied by Time Warner’s executives. Charter issued a statement today that said Time Warner executives rejected the offer. The board of directors reported said that they would entertain an offer of $160 per share, including $100 per share in cash and $60 per share in Charter common stock.
“We gave Charter our bottom line, but rather than pursuing this path, Charter has chosen to go public with its third low-ball offer trying to pressure TWC’s board into selling the company at a grossly inadequate price,” stated Time Warner Cable CEO Rob Marcus.
Charter CEO Tom Rutledge said that he hopes the two companies will come together to negotiate a deal again. “We would like to engage with you to conclude an agreement for a business combination that is beneficial to your shareholders and ours,” stated Rutledge. Rutledge used to be the president of Time Warner Cable before he joined Cablevision in 2004.