Charter Communications (CHTR) Agrees on Divestures with Comcast

Shares of Charter Communications Inc. (CHTR) closed at $130.01 per share, down -0.48 or -0.37 percent on Friday. The company just announced a deal with Comcast Corporation (CMCSA) that will increase the companyâ s subscriber base. The deal, worth $22 billion, will have Comcast divest approximately 3.9 million video customers to Charter.

Stamford, Connecticut based Charter Communications Inc. is a large domestic provider of cable television and high speed internet services. The company is the fourth largest U.S. cable operator after Comcast Corp., Time Warner Cable (TWC) and Cox Communications. Charter provides service to over 27.5 million customers in 31 states. Philadelphia, Pennsylvania based Comcast Corporation is the worldâ s largest mass media company by revenue and the largest cable television and home internet service provider in the United States. In February, Comcast agreed to acquire Time Warner Cable for $45.2 billion. In addition to providing cable and internet services in 40 states and D.C., Comcast owns NBC, Universal Pictures and a slew of other entertainment interests. The agreement with Charter is Comcastâ s way of fulfilling their obligation along with Time Warner to reduce their post-merger market share to less than 30 percent of total national MVPD subscribers. Under the terms of the agreement, which is subject to the close of the Time Warner/Comcast merger, Charter will receive 1.4 million existing Time Warner subscribers, expanding Charterâ s customer base to 5.7 million and bumping Charter up to the second largest cable operator domestically. After Comcast and Charter transfer 1.6 million subscribers respectively, Charter will form a new holding company through a tax-free organization that will own 100 percent of Charter and acquire approximately 33 percent of a new publicly traded company to be spun off by Comcast called â

Published on Apr 28, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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