Comcast and Time Warner Cable confirmed Thursday that they will enter into a $45.2 billion deal to combine the nation’s two largest cable companies, a mammoth proposal that will trigger close scrutiny from federal regulators.
Swooping in to top a competing bid by Charter Communications, Comcast will pay 2.875 of its shares to TWC shareholders. The companies’ respective board of directors have approved the all-stock agreement, which will see all of TWC’s 284.9 million shares acquired at a value of about $158.82 per share. Current TWC shareholders will own about 23% of Comcast’s common stock.
“The combination of Time Warner Cable and Comcast creates an exciting opportunity for our company, for our customers, and for our shareholders,” said Comcast Chairman and CEO Brian Roberts, in a statement. “In addition to creating a world-class company, this is a compelling financial and strategic transaction for our shareholders.”
Comcast shares were down approximately 3.2% at $53.47 shortly after markets opened Thursday. Shares of time Warner Cable were up more than 7% at $144.96.
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