Charter Communications Inc. announced on Tuesday it plans to acquire Time Warner Cable Inc. for $55 billion and form a new cable and broadband company called New Charter.
The deal values Time Warner Cable at about $78.7 billion, including Charter’s assumption of debt. Charter Communications also plans to buy Bright House Networks, another cable systems operator, for $10.4 billion.
In a news release, Charter said it offered investors in Time Warner Cable $195.71 for each share in the company. The company estimated the combination of Charter, Time Warner and Bright House would serve approximately 23.9 million customers in 41 states.
Charter Communications President and CEO Tom Rutledge will serve as New Charter’s president and CEO.
“With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences and fully featured voice products at highly competitive prices,” Rutledge said. “New Charter will capitalize on technology to create and maintain a more effective and efficient service model.”
Time Warner Cable, which provides video, data and phone service, serves roughly 15 million customers across the United States.
“This combination will only accelerate the great operating momentum we’ve seen over the last year and provide enormous opportunities for our 55,000 dedicated employees,” said Robert D. Marcus, chairman and CEO of Time Warner Cable, in a statement. “We remain wholly committed to bringing the very best experience to our residential and business customers coast to coast.”
Charter Communications, which houses a corporate office in Stamford, is the fourth-largest cable operator in the U.S., according to its website.
The transaction is subject to approval by both Charter and Time Warner Cable shareholders, regulatory review and other customary conditions.
