Comcast buys Time Warner for $45.2 billion

Comcast, the largest US cable operator, has bought rival Time Warner Cable – the second-biggest cable operator – for $45.2 billion.

The deal follows a rejected cash and stock offer from Charter Communications – the fourth-largest cable operator – of $132.50, which Time Warner Cable said was “grossly inadequate”.

Comcast’s all-stock offer is valued at $158.82 a share for Time Warner Cable’s stock, with the transaction expected to generate approximately $1.5 billion in operating efficiencies.

“This combination creates a company that delivers maximum value for our shareholders, enormous opportunities for our employees and a superior experience for our customers,” said Robert D. Marcus, chairman and CEO of Time Warner Cable.

“Comcast and Time Warner Cable have been the leaders in all of the industry’s most important innovations of the last 25 years and this merger will accelerate the pace of that innovation.

“Brian Roberts, Neil Smit, Michael Angelakis and the Comcast management team have built an industry-leading platform and innovative products and services, and we’re excited to be part of delivering all of the possibilities of cable’s superior broadband networks to more American consumers.”