Printed from http://www.electronista.com

Charter tenders $61 billion offer to merge with Time Warner Cable

updated 04:45 pm EST, Mon January 13, 2014

Deal, if completed, would be third largest valued merger since 2009

Charter Communications today tendered an buyout plan to Time Warner Cable, offering about $132.50 a share. The deal values Time Warner Cable at $61 billion, and offers $83 in cash per share, and $49.50 in Charter stock to shareholders, making it the third-largest deal for any global company since 2009.

CEO of Charter Tom Rudledge said of the offer that his company hadn't yet received a "serious" response. "Our objective was to talk to management and try to get them engaged," he said. "They have not, so we're going to make our case to shareholders about why this deal is good for them, and hope they ask management and the board to watch out for the interests of shareholders."

Charter previously made an offer in December to merge the pair, but was soundly rejected by Time Warner's board. When Time Warner requested a higher offer, Charter broke off negotiations. Rutledge claims that Time Warner wasn't negotiating in good faith, and said that TWC "knew the price they were offering was designed to not appeal."

Time Warner cable shareholders would own about 45 percent of the merged company in the deal, which would be subject to regulatory approval before conclusion. Rudledge believes that the deal would give the telecommunications giant more power in negotiating for content.

"Since we made our first proposal, Time Warner Cable has lost another half-million video customers," Rutledge said. "Their customer service continues to decline in every measure. We can improve it. We have a demonstrated track record of improving customer service. It's a question of credibility."



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

ActvContent Sync Smartband

Smartbands of all sorts are hitting the market. Some build on the buzz around fitness trackers, while others offer simpler features fo ...

RocketStor 6324L Thunderbolt 2 eSATA bridge

Like it or not, the shift to Thunderbolt is underway. The connection is extremely flexible, allowing for video and data to co-habitate ...

Patriot Stellar Boost XT 64GB USB 3.0 drive

A vast selection of USB memory sticks means that consumers can often find exactly the size drive they need in a configuration that can ...

Sponsor

toggle

Most Commented

 
toggle

Popular News