Comcast to acquire Time Warner Cable in $45 billion deal
13 February 2014 |
US conglomerate Comcast put forward a successful $45 billion offer for Time Warner Cable (TWC) late on February 12, according to local reports.
Comcast is expected to pay $158.82 per share for its smaller competitor, an offer which dwarfs that of rival bidder Charter Communications.
Comcast was thought to be mulling an acquisition of TWC in November last year, and a successful deal could see the US cable market enter a much-needed phase of consolidation.
Comcast is the largest cable operator in the US. A merger between the company and TWC would see the combined operation control a third of the US video market and over a third of its broadband market by subscribers.
Craig Moffet – industry analyst at Moffet Nathanson Research – said in a report last year that “a company of that size would arguably have de facto control of what content could and couldn't exist in the US”.
A formal announcement will reportedly be made later today, but any deal is still likely to face intense scrutiny from US regulators.