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.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.