Mega Deal: Comcast Will Buy Time Warner Cable
In a deal that has major media implications, Comcast will buy Time Warner Cable in an all-stock deal that values Time Warner Cable at $159 per share, CNBC’s David Faber reports.
At this price, Comcast would be paying an 18 percent premium to yesterday’s closing price. “It would value Time Warner Cable at $45 billion. Comcast is valued at $146.5 billion,” reports Business Insider.
As you can imagine, the deal will make Comcast, already America’s largest cable provider, a uge cable company. It currently has 23 million subscribers. Time Warner has 12 million subscribers, making it the second largest.
Still, there are some investors who think Comcast is overpaying in this deal. And others who see antitrust issues looming.
And then there are still others — consumer advocates and lawmakers — who think the deal will give Comcast too much control over what we watch on TV and see online, particularly in light of a recent court decision on net neutrality. The Federal Communications Commission and possible the Justice Department or the Federal Trade Commission will take a look at the deal before it’s finalized.
Comcast beat out Charter, which wanted to merge with Time Warner Cable. Charter wanted to pay only offering $132.50 per share. But the Comcast deal could take a year to complete.
The deal will mean less competition, so do you think consumers will benefit from the deal?