Charter Communications buys Time Warner Cable for over $55 billion

Time Warner Cable
A Time Warner Cable office is pictured in San Diego, California October 15, 2014. REUTERS/Mike Blake

US cable company Charter Communications officially announced Tuesday that it’s buying Time Warner Cable, with a far more generous offer than the botched attempt by Comcast last year.

The deal is worth just over $US55 billion (£35.71 billion), far more than the $US45 billion (£29.22 billion) offered by Comcast. That’s in line with what Bloomberg expected on Monday.

The previous offer fell through after Comcast failed to get regulatory approval.

The new agreement with Charter places a value of $US195.71 on each Time Warner share — 14% more than the company was priced at when markets closed on Friday. The new deal values Time Warner at $US78.7 billion (£51.10 billion).

Bright House Networks, another cable company, will also be rolled into the deal.

The merger creates a massive cable company. Here’s a snippet from the announcement: “The combination of Charter, Time Warner Cable and Bright House will create a leading broadband services and technology company serving 23.9 million customers in 41 states.”

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