Charter Communications announced on Tuesday that it’s buying Time Warner Cable in a deal worth $US55 billion. The acquisition would instantly make Charter the second largest cable broadband provider in the US, following Comcast.
To acquire Time Warner, Charter is offering $US195.71 per share, roughly a 14% premium on Friday’s closing price. The deal values Time Warner at about $US78.7 billion.
But it’s not just the two companies that benefit from the merger. Time Warner’s largest shareholders stand to gain hundreds of millions from the premium Charter is paying for the deal.
Here’s a list of some of Time Warner’s largest shareholders and how much they will gain in the value of the current shares they hold, based on Friday’s closing price. This does not include the value of unexercised options that Marcus and Pace have.
- Dodge & Cox Inc: $US588 million (it owns 19.5 million shares, or 6.9% of TWC)
- Vanguard Group: $US477 million (it owns 15.8 million shares, or 5.6% of TWC)
- Children’s Investment Fund Management: $US453 million (it owns 15 million shares, or 5.3% of TWC)
- State Street Corporation: $US363 million (it owns 12 million shares, or 4.25% of TWC)
- Paulson & Company: $US263 million (it owns 8.7 million shares, or 3% of TWC)
- Robert Marcus, CEO of TWC: $US2.4 million (he owns 79,620 shares)
- Wayne Pace, CFO of TWC: $US831,000 (he owns 27,527 shares)