The best has joined hands with the rest. Comcast has taken over TWC for a sum amounting to $45 billion. What were up until now merely rumors have been confirmed by both companies.
We have already told you about the merger of Comcast and Time Warner Cable. But it was then a rumor. This merger is now confirmed by both firms.
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They happen to be the #1 and #2 cable companies in the United States. Comcast and Time Warner Cable (TWC) have finally given a legal shape to their individual urge to merge.
Comcast will take over the assets of TWC. This of course has ignited accusations of monopolistic designs by the wagging tongues in the surrounding crowd. But Comcast has no such nefarious plans. Rather it will deal in divestitures. This will automatically reduce any chances of too much money or power ending up in a few hands.
"The combination of Time Warner Cable and Comcast creates an exciting opportunity for our company, for our customers, and for our shareholders," said Brian L. Roberts, Chairman and Chief Executive Officer, Comcast Corporation.
Comcast will be paying $159 for each share. The price paid for the acquisition is about $45 billion. Both sides have signed the contract and it is a done deal.
TWC and Comcast have a reach that extends all over the length and breadth of the United States. And the two can create virtual magic for the sheer entertainment of the masses of America. Comcast in particular is willing to sacrifice over three million subscribers for the sake of making the deal final.
“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.
And this merger would benefit Apple too. As we have told you that Apple is rumored to launch its updated set top box this April amid talks with TWC. And this merger would benefit Apple as it will get content from both cable providers.
Mergers, takeovers and acquisitions are the evolutionary engines of the business and commercial world. They act as midwives to change whether on a radical level or in the shape of a slower reform. And ultimately the only danger in case of their occurrence is monopoly which can be easily avoided by a few checks and balances.