Wednesday, February 12, 2014

Comcast Buys Time Warner For $44.2 Billion

CNBC‘s David Faber this evening tweeted that multiple unnamed sources have indicated to him that Comcast (CMCSA) will announce tomorrow a deal to purchase Time Warner Cable (TWC) for $159 per share, in an all-stock deal. 

With 277.9 million Time Warner Cable shares outstanding, the deal would have a market value of $$44.2 billion. With Time Warner Cable stock closing up in today’s session at $135.31, up 41 cents, the deal would offer TWC holders a nearly 18% premium.
Comcast is apparently willing to divest three million subscribers to satisfy any regularity issues about the deal, Faber subsequently tweeted, and he wrote in a subsequent bit, “Comcast deal for $TWC does not face ownership cap restrictions, but sure to get tough review from FCC.$CMCSA wants to avoid consent decree.”
The deal would end months of speculation that had involved scenarios about Charter Communications (CHTR) buying all or part of Time Warner Cable, or possibly partnering with Comcast.
Comcast stock today closed up 24 cents, or 0.4%, at $55.24


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