Charter Communications has agreed to purchase Time Warner Cable in a cash and stock deal valued at $78.7 billion, just weeks after the second largest cable operator in the country watched its deal with Comcast crumble amid growing regulatory opposition.
Charter, which began pursuing Time Warner Cable about two years ago, finally snagged the prize, agreeing to pay $100 per share in cash and 0.5409 shares of Charter stock. The deal values Time Warner Cable at $195.71 per share based on Charter’s closing price on May 20, or $200 per share based on Charter’s 60-trading day volume average price. TWC shareholders can opt to take $115 in cash and 0.4562 shares of Charter stock.
Comcast terminated its $67 billion merger with TWC on April 24, 14 months after agreeing to merge with the company, after it became clear regulators would not approve the deal. Charter, which has substantially fewer customers than Comcast, is expected to have an easier go at it during the regulatory approval process.