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."