Ildar Sagdejev / CC BY SA 4.0

Charter To Buy Time Warner Cable After Failed Comcast Deal

Charter has reportedly made a $55.1 billion deal for Time Warner Cable one month after Comcast walked away from its $45 billion bid.

By Matt Picht | May 25, 2015

Well, that didn't take long. Just over one month after Time Warner Cable's planned merger with Comcast ran afoul of regulators, the cable company has made a deal with Charter Communications.

Bloomberg first reported Monday that Charter was planning to buy out Time Warner Cable for about $55.1 billion in cash and stock. The deal works out to about $195 a share or 14 percent above Time Warner's share price after close Friday.

Charter and Time Warner confirmed the deal Tuesday morning in identical press releases.

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The deal is for substantially more than the $45 billion Comcast offered Time Warner last year. Fears that the resulting company could exert too much influence on the broadband market stalled the potential deal for over a year, Comcast finally pulled the plug in April.

The collapse gave Charter a second chance to acquire a prize the company's been eyeing for some time now — the Comcast deal was proposed over multiple Charter attempts at a buyout.

According to Bloomberg, a last-minute offer to buy Time Warner from European cable provider Altice drove up the price of Charter's bid. Altice just acquired U.S. provider Suddenlink for $9 billion.

If this deal is successful, Charter could gain 12 million new customers in different markets. That's not quite on the same scale as the Comcast-Time Warner deal would have been, but Charter's buyout is still likely to face severe regulator scrutiny in the coming months.

This video includes images from Getty Images, Ildar Sagdejev / CC BY SA 4.0 and Steve Garfield / CC BY NC SA 2.0. Music from Skill Borrower / CC By NC Sampling Plus 1.0.

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