Charter Agrees to Acquire Time Warner Cable for $55 Billion
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Charter Communications Inc. agreed to buy Time Warner Cable Inc. for about $55 billion in cash and stock, scooping up the cable provider after getting last-minute competition from French billionaire Patrick Drahi.
Charter will pay $195.71 a share — 14% above Time Warner Cable’s May 22 close — with Time Warner shareholders getting the choice of $100 and $115 in cash and the remainder in its own stock, according to a statement Tuesday. Bright House Networks, a smaller cable company that Charter has previously agreed to buy, will also be merged into the combined entity.
Charter, the fourth-biggest U.S. cable company, is clinching a deal with No. 2 Time Warner Cable after its early 2014 bid was rejected and Comcast jumped in with a competing offer. Charter got another shot when regulatory scrutiny caused the Comcast deal to fall apart in April and then faced competition last week from Mr. Drahi’s Altice SA, which was said to have held merger talks with Time Warner Cable.
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