updated 07:34 am EST, Thu February 13, 2014
Cable company deal covers 30 million subscribers, could complete by end of 2014
Comcast has announced it will acquire Time Warner Cable, confirming earlier reports. The purchase will see Comcast acquire 100 percent of TWC's 284.9 million shares, worth approximately $45.2 billion, with the stock-for-stock transaction exchanging each TWC share for approximately 2.875 CMCSA (Comcast) shares, or effectively $158.52 per TWC share.
When completed, the new company will be led by Comcast CEO and president Neil Smit, and though it will bring on 11 million managed TWC subscribers to Comcast's existing collection, it is prepared to divest systems serving approximately 2 million users, bringing the entire subscriber count to approximately 30 million accounts. The combined company is expected to achieve cost savings of around $1.5 billion, with both services also set to combine each others products, such as the StartOver live program restart feature and the LookBack three-day archive function.
The supplied press release states that end users will benefit from a "superior video experience, higher broadband speeds, and the fasted in-home Wi-Fi." Businesses will be able to use advanced services such as "high-performance point-to-point and multi-point Ethernet services and cloud-based managed services," as well as complimentary advertising platforms.
Due to its size, the deal will receive a considerable amount of scrutiny from US regulators, as well as from shareholders, and therefore will take a long time to pass through all stages. Even so, Comcast believes the acquisition will close by the end of 2014.