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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 superstition on 2/13/2014 6:28:49 PM , Rating: -1
Most of the stuff I've seen posted on that site involves transactions using a highly regulated currency... and a lot of people are going to have to use Comcast to see it.

Comparing craigslist to an actual functioning capitalist society is like comparing a Renaissance Fair with the real thing. Of course, the witches from a fair have a better shot at being real than an actual functioning capitalist society.


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.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














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