Feb 13 2014, 12:46am CST | by Gene Ryan Briones
CNBC‘s David Faber tweeted earlier this evening that Comcast will be announcing the purchase of Time Warner Cable tomorrow, Thursday. Faber says that it will be an all-stock deal with Comcast willing to pay $159 per share - roughly $23 per share higher than TWC's current stock trading.
According to Barrons , Time Warner Cable has 277.9 million shares outstanding, which would put the deal at around $44 billion. Meanwhile, the Wall Street Journal reported a much higher agreement of $45 billion, adding that the board from both companies have already approved the deal.
Comcast buying Time Warner will be like AT&T acquiring T-Mobile. That means the deal is bound to face backlash and criticism.
It already has. Some took to Twitter to express their fears about the deal, tweeting that the acquisition will lead to fewer consumer options while giving Comcast more market control.
Comcast has over 22 million customers in the U.S. Time Warner Cable, on the other hand, has about 12 million.
Faber also tweeted that Comcast is willing to divest around 3 million subscribers to seal the deal, should it face ownership cap restrictions. Comcast has beaten another bid made by Charter Communications. The latter has been reportedly chasing TWC for months.
The latest bid, which was around $132.50, was rejected for being too low.
Comcast will indicate willingness to divest 3m subs from combination with $TWC - sources.— DAVID FABER (@davidfaber) February 13, 2014
Gene Ryan Briones
Gene Ryan Briones (Google+) is a technology journalist with a wide experience in writing about the latest trends in the technology industry, ranging from mobile technology, gadgets and robots, as well as computer hardware and software.
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