updated 12:58 pm EDT, Mon April 28, 2014
Move to pave the way to merger will make Charter the second largest provider
Comcast Corporation and Charter Communications today announced that the companies have reached an agreement on a series of transactions that will see the Comcast-Time Warner Cable merger divest approximately 3.9 million customers. The sale is part of the terms of the deal, where Comcast has agreed to cede a portion of its subscriber so that its total is less than 30 percent of total cable company subscribers overall.
Following the close of the Comcast-Time Warner Cable merger, Charter will acquire approximately 1.4 million existing Time Warner Cable subscribers, increasing Charter's current residential and commercial video customer base from 4.4 million to approximately 5.7 million, and making Charter the second largest cable operator in the United States.
Charter and Comcast will also each transfer approximately 1.6 million customers respectively. In addition, Charter will form a new holding company eponymously called New Charter that will own Charter as it stands now, and an approximate 33 percent stake in a new publicly-traded cable provider to be spun-off by Comcast, serving approximately 2.5 million customers.
The agreement has been approved by the Boards of Directors of all three companies. The transactions are subject to a number of conditions, including the closing of the Comcast-Time Warner Cable merger, Charter shareholder approval, and acquisition of FCC and other required regulatory approvals.