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Comcast to buy Time Warner Cable for $45 billion

By David Gelles / New York Times

LAST UPDATED: 06:40 a.m. HST, Feb 13, 2014

Comcast will announce a deal to acquire Time Warner Cable in an all-stock deal worth $45.2 billion that will unite the biggest and second largest cable television operators in the country, according to people briefed on the matter.

The surprise merger — expected to be announced Thursday — is likely to bring to an end a protracted takeover battle that a smaller cable rival, Charter Communications, has been waging for Time Warner Cable, and will be the second major deal for Comcast in recent years to radically reshape the U.S. media landscape.

Time Warner Cable shareholders will receive 2.875 shares of newly issued Comcast common stock for each of their shares. Based on Comcast'sclosing price of $55.24 Wednesday, that values each Time Warner Cable share at about $158.82 each.

The combination of the two is certain to attract antitrust scrutiny by regulators.

David Faber of CNBC earlier reported the deal.

Charter had been courting Time Warner Cable for months. Last month, Charter had offered to acquire the company for $132.50 a share — roughly around the market price of Time Warner Cable at the time.

The board of Time Warner Cable unanimously rejected that proposal, calling it "grossly inadequate."

A deal by Comcast would come four years after the cable giant agreed to acquire NBC Universal from General Electric in a transaction that valued NBC Universal at $30 billion.

Morgan Stanley, Allen & Co. and Citigroup had been advising Time Warner Cable on its defense from Charter, with Paul, Weiss, Rifkind, Wharton & Garrison providing legal advice. Comcast is being advised by JPMorgan Chase, among others.

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hanabatadayz wrote:
can they do anything to change their poor customer service though?..wait times of 40 minutes or even longer are just not acceptable
on February 12,2014 | 05:59PM
soundofreason wrote:
I'm going to miss the Indian chat service support people :/
on February 13,2014 | 06:36AM
hanabatadayz wrote:
don't know what you're talking about cuz i've always talked to someone local..maybe an indian chat service would be faster..locals are just too slow
on February 13,2014 | 07:23AM
joseph007 wrote:
Expect higher fees now for "better service" that will be claimed.
on February 13,2014 | 07:28AM
scooters wrote:
Stand by because here comes the RATE INCREASE !!!
on February 12,2014 | 06:03PM
inlanikai wrote:
Comcast charges $8/mo for a cable modem. More than Oceanic. And their service is the worst. Very arrogant towards their customers, IMO. Lousy technology. Time to look at HiTel's offerings. Not sure if the grass is greener, however. This is a terrible deal for Hawaii unless the Justice Dept forces some divestiture of systems and Oceanic gets bought up by Charter.
on February 12,2014 | 09:15PM
2localgirl wrote:
Ah, better for the people, take away the competition....
on February 12,2014 | 08:40PM
Publicbraddah wrote:
You take away competition, the prices go up. Competition keeps prices down. Unless you're talking about Comcast "people".
on February 13,2014 | 05:48AM
GorillaSmith wrote:
This would have been big news 20 years ago and would worry me if cable companies were still important. The deal will push even more people to drop cable and "cut the cord". This is great news for 21st century companies like Netflix nd Roku.
on February 12,2014 | 09:31PM
iwanaknow wrote:
45 Billion is more than some countries GNP!
on February 12,2014 | 11:55PM
PMINZ wrote:
I knew that this was coming around 6 months ago when news leaked out about the try by 'Charter' to buy 'Time Warner'. Since 'Comcast' is so much bigger. 'comcast' has a verry bad reputation according to many blogs by their costomers. Yep price increases will come and loads of customers bailing. I have just been waiting for 'Hawaiian Telcom" to be available in my area.
on February 13,2014 | 03:25AM
Maneki_Neko wrote:
So we basically swap a monopoly with a much bigger monopoly? And this is good for consumers how?
on February 13,2014 | 05:00AM
Publicbraddah wrote:
Go Hawaiian Telcom.
on February 13,2014 | 05:49AM
soundofreason wrote:
After being gouged by Oceanic at work, they switched to Hawaii Telcom's business bundle. Glad they did.
on February 13,2014 | 06:38AM
boshio wrote:
I wish Hawaii Telcom would give us an update on their services.
on February 13,2014 | 07:57AM
hanabatadayz wrote:
hawaiian telcom is ok but it can't compete with oceanic's internet..oceanic gives you more speed than what you pay for..hawaiian telcom gives you less than what you pay for..i pay for 20mb but i get speeds over 30mb..if speed matters to anyone then oceanic will always come out on top..another thing with hawaiian tel is you won't like it if you're a sport or surfing junkie..they don't have oc12 or the surfing channel..huge in my book cuz i'm a surfer
on February 13,2014 | 11:06AM
inHilo wrote:
Time to look elsewhere. No ConCast for me. Seems like a giant competition-eating monster.
on February 13,2014 | 05:59AM
BigErn wrote:
on February 13,2014 | 06:11AM
control wrote:
its all about ego, power, and an deliberate attempt to dictate what americans watch on tv and over the internet. All too many media outlets in our country are controlled by a handful of companies.
on February 13,2014 | 07:03AM
Mike174 wrote:
Ha! you think Oceanic was bad & expensive? You ain't seen nothing yet! just wait! Comcast sux!
on February 13,2014 | 07:22AM
joseph007 wrote:
Expect higher fees now.
on February 13,2014 | 07:27AM
boshio wrote:
We are screwed is right If congress accepts this merger. Very shortly there after the cable company will determine what we can and cannot affordably watch. This merger should not even be considered by law.
on February 13,2014 | 07:56AM
jbguzior wrote:
does this mean no more OC16???? Good riddens worst production on the planet
on February 13,2014 | 08:13AM
Kalaheo1 wrote:
We all complain about Time-Warner but if oyu ever talk to anyone on the mainland about their cable service, Comcast is the WORST.

Going from a virtual monopoly to an an actual monopoly won't do anything for customer service.

on February 13,2014 | 08:36AM
entrkn wrote:
An already bad thing about to get worse... What's happened to the laws that are supposed to protect us from monopolies?
on February 13,2014 | 10:02AM
Numilalocal wrote:
I feel sorry for Oceanic's employees. Service - for me at least - has always been pleasant and professional. But with big corp taking over, I fear that, in addition to higher rates from what already is a monopoly, local employees will be forced to conform to more onerous rules and, of the course, the bottom line. Which always results in diminished customer service.
on February 13,2014 | 11:24AM
dlum003 wrote:
Uh boy, hope this doesnt mean I cant watch UH, OIA, and Surf channels on Oceanic cable anymore. thats their exclusive programming and I love them all. I hate watching "TV" via the internet. I also read that Comcast is the lowest rated nationally for customer satisfaction. never had a prblem with oceanic.
on February 13,2014 | 01:22PM
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