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The deal is expected to be completed by the end of 2014

Big cable just got much bigger: Comcast confirmed that it has acquired Time Warner Cable (TWC) in an all-stock transaction. 

According to a joint press release by Comcast and TWC, the former acquired the latter for $45.2 billion, merging the two largest U.S. cable companies. 

"The combination of Time Warner Cable and Comcast creates an exciting opportunity for our company, for our customers, and for our shareholders," said Brian L. Roberts, Chairman and Chief Executive Officer, Comcast Corporation. "In addition to creating a world-class company, this is a compelling financial and strategic transaction for our shareholders. Also, it is our intention to expand our buyback program by an additional $10 billion at the close of the transaction.

"We believe there are meaningful operational efficiencies and the adjusted purchase multiple is approximately 6.7x Operating Cash Flow. This transaction will be accretive and will yield many synergies and benefits in the years ahead. Rob Marcus and his team have created a pure-play cable company that, combined with Comcast, has the foundation for future growth. We are looking forward to working with his team as we bring our companies together to deliver the most innovative products and services and a superior customer experience within the highly competitive and dynamic marketplace in which we operate."


[SOURCE: Compare Satellite]

The deal, which is expected to be completed by the end of 2014 (after approval by stockholders and regulators, of course), will give TWC investors 2.875 Comcast stock for each of their shares. TWC shares are valued at $158.82 a piece.
 
TWC shareholders will own about 23 percent of Comcast’s common stock, and the press release said Comcast plans to buy back an additional $10 billion of its shares. 
 
The deal will up Comcast’s free cash flow per share and produce savings of about $1.5 billion. The overall acquisition values TWC at at about $69 billion including net debt.
 
The National Cable Television Association said Comcast and TWC merged would account for almost three-quarters of the cable industry. 
 
This is sad news for Charter Communications Inc., which had been pursuing a potential deal with TWC since June 2013. Charter's offer to TWC was $132.50 per share. 
 
Charter won't likely trump Comcast's bid, but it could grab some extra subscribers from the acquisition. Comcast will reportedly divest about 3 million subscribers of the acquisition in order to keep its market share below 30 percent -- meaning Charter could potentially buy whomever Comcast is willing to sell.
 
Up until the Comcast acquisition, both Comcast and Charter were talking an asset sale after the supposed Charter acquisition of TWC. But a meeting last week reportedly ended with Comcast threatening to do the deal itself without Charter. Comcast wanted to do an all-stock deal, have a say in how Charter dealt with its proxy fight with TWC, and pushed Charter to divest more assets.
 
With Comcast jumping ahead and doing the deed itself, it has now gained more than 11 million residential subscribers, not to mention it also gets access to the New York City cable market. This will likely allow it to hash out better deals with content providers. However, big cable is now huge, with Comcast clearly dominating the market more than ever. We'll have to wait and see if the deal passes regulatory approval, but Comcast is likely hoping that won't be an issue if it sells off some of its customers. 

Source: Comcast



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RE: Monopoly
By McGaiden on 2/13/2014 11:40:53 AM , Rating: 5
Comcast is now the Standard Oil of cable TV and soon TV itself.

It must be broken up, but its executives are big donors to the dems. David Cohen, the VP of Comcast, is a personal friend to Obama.

And the GOP is more slavishly committed to big business than the dems(who are bad enough). Basically, we need to start public pressure on this issue.

Effective monopolies are never good.


RE: Monopoly
By superstition on 2/13/14, Rating: -1
RE: Monopoly
By jRaskell on 2/13/2014 2:40:53 PM , Rating: 5
The environment US cable companies operate in is SOO far from being capitalism that it's laughable to even use that word anywhere near a discussion concerning cable companies.


RE: Monopoly
By superstition on 2/13/2014 4:42:29 PM , Rating: 2
Find me an environment that isn't SOO far.


RE: Monopoly
By ebakke on 2/13/2014 6:14:53 PM , Rating: 2
craigslist


RE: Monopoly
By superstition on 2/13/14, Rating: -1
RE: Monopoly
By ebakke on 2/13/2014 6:57:49 PM , Rating: 4
You wanted an environment that wasn't so far from capitalism. You didn't want, and I didn't give you, an environment that is *pure* capitalism. Move the goal post back to its original position.


RE: Monopoly
By superstition on 2/14/2014 11:03:25 AM , Rating: 2
Your example exists primarily within a framework that counts as "SOO far". Craigslist is a really poor example of a functioning capitalist government/society.


RE: Monopoly
By ebakke on 2/14/2014 11:49:34 AM , Rating: 3
Of course craigslist is a terrible example of any type of government or society. It's not a government, and it's not a society.

It's an environment that's as far removed from government interference as anything I can think of. Individuals/businesses engage in trade without coercion and without artificial manipulation by government. It's an environment that's *much* closer to true capitalism than the environment in which you purchase healthcare, for example. Or in which you purchase internet. Or in which you buy/sell alcohol.

Again, you wanted an example of an environment with less interference than currently exists in the cable internet service industry. I gave it to you.


RE: Monopoly
By superstition on 2/16/2014 9:04:59 PM , Rating: 2
quote:
It's an environment that's as far removed from government interference as anything I can think of.

Since it's encapsulated it isn't far removed at all, any more than doll house is far removed from reality.


RE: Monopoly
By superPC on 2/13/2014 4:56:53 PM , Rating: 1
An idiot knows capitalism is all about capital. Monopoly is the best way of achieving maximum capital gain.

Of course capitalism has to be counter balanced with FREE MARKET. Otherwise people that doesn't have much capital (regular Joes and Jane like most of us here) will only get less service for more expensive prices. And as we all know, it is IMPOSSIBLE to have a FREE MARKET if a company is monopolizing that said market. This is basic economy.


RE: Monopoly
By tanjali on 2/13/2014 5:07:01 PM , Rating: 3
As soon as there is monopoly, definition capitalism no longer apply because there is no truly free market there after.


RE: Monopoly
By superstition on 2/13/2014 6:05:49 PM , Rating: 2
Where is the regulation going to come from? The sky? The market is supposed to be able to magically regulate itself but it doesn't. You get cartels or monopolies. You get politicians who are bought and paid for.

People love to pretend that capitalism exists but what it really is is a veneer on plutocratic socialism.

People can look up Sonny Bono's Copyright Term Extension Act if they don't believe me.


RE: Monopoly
By Reclaimer77 on 2/13/2014 8:12:29 PM , Rating: 1
There hasn't been a true monopoly in this country in like a hundred years.

Even this deal, as sucky as it is, only gives them 30% of the market.

Honestly you guys are going overboard. Capitalism isn't perfect, but its the best system mankind can come up with.


RE: Monopoly
By Camikazi on 2/13/2014 8:40:42 PM , Rating: 2
Comcast alone has close to 40% of the cable market share right now. They have double the subscribers of Time Warner (number 2 spot) and 4 times more than Cox (number 3 spot). With this merger they would end up with 6 times as many subscribers as Cox and more than all others put together.


RE: Monopoly
By rocketcuse on 2/14/2014 12:15:52 PM , Rating: 2
According to the CBS Nightly News report, the merger would give Comcast 65.8% of the market.


RE: Monopoly
By jbwhite99 on 2/14/2014 4:42:46 PM , Rating: 2
Isn't Windows a near monopoly? Or was a few years ago?


RE: Monopoly
By room200 on 2/13/2014 10:43:08 PM , Rating: 3
That can't be; according to all the posts I've read here, Obama is a socialist. Isn't THIS capitalism? Companies grow and grown and grow and the government keeps its nose out of the the business's business? Now all of a sudden, you want help from the gubment? I guess it's not bad until it affect some of your OWN pockets. LOL


RE: Monopoly
By DocScience on 2/14/2014 2:31:37 PM , Rating: 1
Obama is a crony capitalist in the style of the corrupt Chicago Machine.

His beliefs however have a strong flavor of socialism and social justice forced redistribution of other people's money.


RE: Monopoly
By room200 on 2/14/2014 4:24:33 PM , Rating: 4
Now there's something; you called the guy a capitalist and a socialist in the same post. That means either A) You're an idiot or B) You simply hate and will say anything stupid without caring whether or not it makes sense.


RE: Monopoly
By Dorkyman on 2/14/2014 4:07:46 PM , Rating: 1
OF COURSE Messiah is a socialist. It's how he was brought up, the mentors he had.

But people, you're all freaking out over nothing. The Feds won't allow this merger to take place. Simple as that.


RE: Monopoly
By room200 on 2/14/2014 4:21:26 PM , Rating: 4
Dude, once and for all...turn off Faux "News". It's not real. They don't even believe what they're saying. It's all for the money. They'll throw you red meat as long as you dummies swallow it.


RE: Monopoly
By EasyC on 2/19/2014 6:19:59 AM , Rating: 2
It's useless to tell them. They keep lapping up Faux news like a hungry kitten. That's how Faux news gets to be so ridiculous, like having "doctors" on saying that women can't get pregnant if raped.

Once I hear someone start talking about something they heard on Faux news, I stop listening and walk away. It's just not worth the head ache.


RE: Monopoly
By inperfectdarkness on 2/14/2014 3:56:03 AM , Rating: 4
Friend of the Dems? Then why is the GOP the ones pushing C/TW agenda by opposing net neutrality?


RE: Monopoly
By Reclaimer77 on 2/14/14, Rating: -1
RE: Monopoly
By room200 on 2/14/2014 11:13:40 AM , Rating: 2
lol


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