Comcast and Time Warner agree $44bn mega-merger
Cable operators Comcast and Time Warner, respectively the first and second largest providers in the US, have announced that they are to join forces in a $44bn mega-merger.
Comcast sealed an all-share deal valuing Time warner at close to $159 a share, far higher than an earlier bid made by rival cable player Charter Communications, which came in at just $132.50 a share.
It is not yet clear if Time Warner will attempt to gazump Comcast by inviting Charter to make a more favourable offer.
Competition regulators are likely to be wary of any tie-up however as the combined Comcast/Time Warner entity will have an audience that is close to seven times greater than its nearest competitor.
Charter is 27 per cent owned by Liberty Media, a television and internet conglomerate run by billionaire John Malone – who last year led a $16bn purchase of Virgin Media by Liberty Global.