The country's biggest cable operator is set to take over the second biggest cable company in a blockbuster deal: CNBC's Dan Faber reported, "Comcast to buy Time Warner Cable in all stock deal worth $159 per $TWC share- sources. Deal set for tomorrow morning. Ratio is 2.875 $CMCSA." So, will Time Warner Cable News NY1 now become Comcast TWC News NY1? Or just Kabletown NY1?
According to the Wall Street Journal, "In the deal, Time Warner Cable shareholders will receive $158.82 a share in stock for their shares, about $23 a share above where TWC has been trading."
Charter Communications, the fourth-largest cable operator, had been in hot pursuit of Time Warner Cable as well, offering $132.50 a share, which Time Warner called "grossly inadequate." Because Time Warner is expert at gouging. But Comcast is not soft:
Of course, the FCC is the big wild card—the NY Times states, "The combination of the two is certain to attract antitrust scrutiny by regulators."
On the one hand, Time Warner isn't into high speed internet. On the other hand, Comcast may be throttling Netflix. Good times ahead, right?
