Comcast has made official its bid to acquire Time Warner Cable (TWC) via an all-stock deal worth approximately US$45.2 billion.
The merger would see Comcast acquire all of Time Warner Cable’s 284.9 million shares, with both companies touting the transaction in an official statement as one that will “create a leading technology and innovation company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.”
The new company, a combination of the largest and second-largest cable TV operators in the U.S., will be led by president and CEO Neil Smit, and will bring to Comcast TWC’s approximately 11 million subscribers. According to the release, in order to “reduce competitive concerns,” Comcast is prepared to divest systems that serve approximately three million subscribers, giving it a net of eight million more subscribers pending regulatory approval, which the companies say is expected by end of the year.
“This transaction will be accretive and will yield many synergies and benefits in the years ahead,” said Comcast CEO and chairman Brian Roberts (pictured) in the statement. “Rob Marcus and his team have created a pure-play cable company that, combined with Comcast, has the foundation for future growth. We are looking forward to working with his team as we bring our companies together to deliver the most innovative products and services and a superior customer experience within the highly competitive and dynamic marketplace in which we operate.”
“Comcast and Time Warner Cable have been the leaders in all of the industry’s most important innovations of the last 25 years and this merger will accelerate the pace of that innovation,” added Time Warner Cable chairman and CEO Robert Marcus.
Comcast owns NBCUniversal, which operates the NBC and Telemundo broadcast networks in the U.S., 30 cable nets including USA Network, Syfy and Bravo, and Universal Pictures.