Comcast to Buy Time Warner Cable in $44.2 Billion All-Stock Deal, Says CNBC
Source: Barron's
CNBCs David Faber this evening tweeted that multiple unnamed sources have indicated to him that Comcast (CMCSA) will announce tomorrow a deal to purchase Time Warner Cable (TWC) for $159 per share, in an all-stock deal.
With 277.9 million Time Warner Cable shares outstanding, the deal would have a market value of $$44.2 billion. With Time Warner Cable stock closing up in todays session at $135.31, up 41 cents, the deal would offer TWC holders a nearly 18% premium.
Comcast is apparently willing to divest three million subscribers to satisfy any regularity issues about the deal, Faber subsequently tweeted, and he wrote in a subsequent bit, Comcast deal for $TWC does not face ownership cap restrictions, but sure to get tough review from FCC.$CMCSA wants to avoid consent decree.
The deal would end months of speculation that had involved scenarios about Charter Communications (CHTR) buying all or part of Time Warner Cable, or possibly partnering with Comcast.
Read more: http://blogs.barrons.com/techtraderdaily/2014/02/12/comcast-to-buy-time-warner-cable-in-44-2-billion-all-stock-deal-says-cnbc/
Veilex
(1,555 posts)More media conglomerate consolidation. Yay. Woo, hoo. I'm sure the little guy will be a big... winner as a result of this deal.
/sarcasm off
dixiegrrrrl
(60,010 posts)Comcast has been bad enough when it HAD competition.
thank god I don't have to be one of their sheeple...
lostincalifornia
(3,639 posts)JDPriestly
(57,936 posts)the media conglomerate consolidation. It is not healthy for the country.
Mojorabbit
(16,020 posts)father founding
(619 posts)The Job Creators at it again.
Fearless
(18,421 posts)KamaAina
(78,249 posts)The way there is on broadcast networks owning and operating their own stations?
Oh, by the way, that includes NBC.
geomon666
(7,512 posts)durablend
(7,460 posts)Everyone keeps talking about "cord cutting", but unless you're willing to go back to dial up, guess what?
geomon666
(7,512 posts)It's cutting the TV portion. Yes, we still need the internet. Just hoping one day FIOS or something else saves us all.
SoapBox
(18,791 posts)jsr
(7,712 posts)davidn3600
(6,342 posts)durablend
(7,460 posts)Rich people get richer.
So what's the problem? None from 'conservatives' (R or D) perspective.
LittleBlue
(10,362 posts)Why even bother? We're going to have one cable company for the entire United States.
Obama, where are you?
Jesus Malverde
(10,274 posts)gerogie2
(450 posts)Your cable TV rates will go through the roof along with Internet broad band. Just last month in the State of Kansas Comcast lobbied the to have no other broad band common carrier service to be established.
I'm stuck with Comcast service for TV since my area has no local TV service, but I have cut the Internet broadband cable. I just have Comcast basic TV for $16 month. I wonder if that price will be doubled?
Jesus Malverde
(10,274 posts)The competition is usually between the existing cable monopoly and satellite.
bigworld
(1,807 posts)And how independent the good folks there really are.
AngryAmish
(25,704 posts)brooklynite
(94,518 posts)...tomorrow, Comcast customers will have a choice of one cable company.
Explain to me the problem here?
erpowers
(9,350 posts)This deal between Comcast and Time Warner Cable needs to be stopped. The merger between Comcast and NBC Universial also needs to be broken up. All these mergers are creating one hugh monopoly.
Scuba
(53,475 posts)Swede Atlanta
(3,596 posts)unless the DoJ grows some cajones and stops this.
Successive DOJs have demonstrated either they didn't learn anything from history or they have been bought and sold by corporate interests.
The Sherman Anti-Trust law was passed in 1890 at the height of the "gilded age" when monopolies and anti-competitive practices dominated American commerce. The big players were Carnegie, Rockefeller, JP Morgan and the like. Teddy Roosevelt who assumed the Presidency after the assassination of President McKinley in 1901 did all he could to challenge and break up the cartels, monopolies and anti-competitive agreements.
The last time there was any real major block or action against monopoly was the breakup of the Bell system. The DoJ started a lawsuit to break up the monopoly in 1974 but it took 10 years before the divestiture was mandated in 1984.
Since then the DoJ generally rubber-stamps anything business wants. They might require a few small concessions such as the NW-DL, CO-UA and recent AA-US mergers. But in general from allowing banks to swallow one another to airlines, etc. the DoJ seems to think bigger is better.
Comcast's acquisition of Time Warner is bad for consumers. It will further consolidate power to the point there are really only 2-3 players.
While the time of the robber barons found in some cases total monopolies, it was also a time when businesses entered into collusive agreements with one another to push out competition. Rockefeller's Standard Oil did deals with the major railroads to charge a premium for the transportation of oil of any of his competitors.
We need real competition not continued concentration.
Javaman
(62,521 posts)as long as it's comcast.
durablend
(7,460 posts)Pay it or do without!
See?
closeupready
(29,503 posts)PFunk
(876 posts)I know I sound crazy. After all this it the sheeple I'm talking about here. And cable TV and internet are becoming a third rail for these folks. So f'ing w/this is bound PO with these folks big time. Right?
(ok maybe I am dreaming)
Faryn Balyncd
(5,125 posts)Ruby the Liberal
(26,219 posts)Looks like that is going to be true for a whole lot more people now.
Kablooie
(18,631 posts)And since they will provide everyone's internet connection they will be able to control that too.
Not bad for the worst company in the country.