As a way to increase the chances of getting the approval of regulators in the Time Warner Cable merger, Comcast has offered to sell a whopping 1.4 million pay TV subscribers to Charter Communications for $7.3 billion.
That wasn’t the only offer made by Comcast. The cable giant also said it would divest an additional 2.5 million subscribers into a new publicly traded company, of which Charter would be given a one-third ownership.
If these offers are taken, Charter could potentially end up with 5.7 million customers, making it the second biggest pay TV company in the United States—larger than Cox Communications. However, this deal is based upon the merger between Comcast and Time Warner Cable being approved by the Justice Department and the U.S. Federal Communications Commission. The approval could take months.
Charter had made a bid for Time Warner Cable, but Comcast’s offer was higher. Yet, this offer made by Comcast could still bode well for Charter. According to Pivotal Research Group analyst Jeff Wlodarczak, “For Charter, this deal is a transformative event, and sets them up over time to consolidate the balance of the rest of the cable industry.”
Assistance with Mergers
Each merger and acquisition is different and requires expertise to ensure every “t” is crossed and every “i” is dotted. If you are considering a merge agreement with another company, you should talk to a business lawyer. An attorney will be able to walk you through the process and help you the needed steps.
For more information, call the Plano business lawyers at Ferguson Braswell Fraser Kubasta PC today at 972-378-9111. You can also fill out our online contact form.