US cable company Charter Communications has officially made a public announcement on Tuesday that it is acquiring Time Warner Cable with a much fancy offer than the failed attempt by Comcast a year ago. Last year, Comcast offered $45 billion (£29.22 billion) to buy off Time Warner Cable but the offer didn’t see the other end of the tunnel – it failed, until now that Charter Communications have gotten ahead in reaching a $55 billion agreement, equivalent to £35.71 billion, to take over the company, according to the lead we got from Bloomberg.
Comcast failed to nail the previous offer due to its inability to get regulatory authorization.
With the new agreement, Charter Communications has placed a value of $195.71 on each of Time Warner share — 14% higher than how much the company shared was priced at the closing of the market on Friday. The acquisition of Time Warner cable has up its worth to $78.7 billion (£51.10 billion). Embedded into the agreement is another cable company called Bright House Networks.
According to the official announcement released by the Charter Communications today, it reads:
“The merger of Charter, Time Warner Cable and Bright House Networks will create a foremost broadband service and technology company providing services to more than 23.9 million customers in 41 states.”
The unification will make Charter Communications the second largest cable company in the US, offering its services to about 20 million cable and internet subscribers.