• Comcast to buy Time Warner for $159 per share

    Comcast is set to buy Time Warner Cable in an all-stock deal that values Time Warner at $159 per share, CNBC's David Faber reports on Twitter.

    At $159, Comcast would be paying an 18% premium to today's closing price. It would value Time Warner Cable at ~$45 billion. Comcast is valued at $146.5 billion.

    This would make one gigantic cable company.

    Comcast is the biggest cable provider in the U.S. with 23 million subscribers. Time Warner is the second biggest with 12 million subscribers. The next closest is Cox with 4.6 million subs. (All numbers from Wikipedia.) Satellite company DirecTV has 20 million subscribers.

    Time Warner Cable has been in play for months now. Charter has been trying to merge with Time Warner Cable. It even nominated a full slate of board members.

    But Charter was only offering $132.50 per share for Time Warner, which Time Warner rejected as "grossly inadequate," according to The New York Times.

    Time Warner was holding out for a better deal, and it looks like it got one.

    However, this is far from a done deal. It will come under heavy government scrutiny.

    This would create the biggest pay-TV business by a mile. There's not exactly a ton of competition in the world of cable, but this would effectively make it nonexistent.

    More to come, but here are the tweets:

    Comcast to buy Time Warner Cable in all stock deal worth $159 per $TWC share- sources. Deal set for tomorrow morning. Ratio is 2.875 $CMCSA.
    DAVID FABER (@davidfaber) February 13, 2014
    Comcast will indicate willingness to divest 3m subs from combination with $TWC- sources.
    DAVID FABER (@davidfaber) February 13, 2014
    Comcast deal for $TWC does not face ownership cap restrictions, but sure to get tough review from FCC.$CMCSA wants to avoid consent decree.
    DAVID FABER (@davidfaber) February 13, 2014

    Source: http://www.businessinsider.com/comca...r-cable-2014-2
    Comments 8 Comments
    1. megabyteme's Avatar
      megabyteme -
      Well, it's not like broadband is a common carrier utility. Why not?

    1. bobbintb's Avatar
      bobbintb -
      Uh oh...
      This is not good.
    1. Rart's Avatar
      Rart -
      The one thing we can take solace in is that this is almost analagous to AT&T buying out Verizon... and AT&T buying T Mobile was shut down, so there's hope.

      On the other side, it could be argued that TWC and Comcast don't overlap/directlyy compete in their services (yay local monopolies) and thus the merger is perfectly valid.

      Also: http://www.huffingtonpost.com/2014/0...n_4780173.html

      Comcast CEO calls this "pro-competitive" and "pro-consumer".

    1. trogdor's Avatar
      trogdor -
      Now even more people can enjoy bad customer service.
    1. gamelink's Avatar
      gamelink -
      Thanks, petitioned
    1. rlewis1767's Avatar
      rlewis1767 -
      The two cable companies rated as having the worst customer service are merging to form the largest cable company ever. They claim because their markets don't overlap that it doesn't fall under antitrust regulations, even though the only reason they don't overlap is because they already had local monopolies on cable service. Don't hold your breath waiting for the SEC to kill this deal. Antitrust has not been high on their priority list for 20 years. The only way for this deal to fail is for people to start screaming at their representatives. Not likely.
    1. megabyteme's Avatar
      megabyteme -
      Great first point, rlewis. "Pro-competitive" and "Pro-consumer" would require these two to compete against each other in the same areas. Case closed.