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