Charter strikes a deal to purchase Time Warner Cable for $55.3 billion. Including TWC’s debt that will be consumed by Charter, the over-all deal is valued at an approximate $79 billion. The last time Charter bid on TWC, Comcast outbid them. Federal regulators prohibited that acquisition, as it would’ve created one giant. Comcast is still larger than a merged Charter-TWC, allowing the deal a greater chance of finalizing.
While Time Warner Cable is the larger company that Charter’s interested in acquiring, there’s another company they’re working on as well. It will be more of a trilateral cooperation, as they proceed with their offer of $10.4 billion for Bright House Networks. The Bright House acquisition depends on a successful merger between Charter and TWC. Charter expects to close deals with both companies before the end of 2015.
The battle for broadband is one reason the Comcast-TWC deal was declined by regulators. Concerns arose that as a monopoly, they would harm competitors and have the control to prioritize Internet traffic. Even as a trilateral cooperation, Charter-Time Warner-Bright House, will only have about 30% of the broadband market. This “New Charter” is already thinking ahead to the opportunities they can realize in this market. (Steel, 2015)
Dodgers will be televised. The Dodgers LA games have been exclusive to Time Warner Cable since 2014. Part of recent deal benefits baseball fans, as Charter plans to start offering the Dodger’s owned channel. Charter expects to have the channel available within the next couple weeks.
Mergers play out like war in the sense that alliances grow, banding together against their rivals and over-stepping the borders. Russian politician, Dmitry Rogozin joked about Russia's assertiveness, “tanks don't need visas.” (BBC News, 2015) Once Charter has established their tank, we’ll have to see if they’re able to deploy faster and better quality service.
Works Cited
BBC News. (2015, 05 26). Russia begins massive air force exercise. Retrieved 05 26, 2015, from BBC : http://www.bbc.com/news/world-europe-32877936
Steel, E. (2015, 05 26). Broadband at the Center of Charter-Time Warner Cable Deal. Retrieved 05 28, 2015, from New York Times: http://www.nytimes.com/2015/05/27/business/dealbook/charter-communications-agrees-to-acquire-time-warner-cable.html?_r=0
While Time Warner Cable is the larger company that Charter’s interested in acquiring, there’s another company they’re working on as well. It will be more of a trilateral cooperation, as they proceed with their offer of $10.4 billion for Bright House Networks. The Bright House acquisition depends on a successful merger between Charter and TWC. Charter expects to close deals with both companies before the end of 2015.
The battle for broadband is one reason the Comcast-TWC deal was declined by regulators. Concerns arose that as a monopoly, they would harm competitors and have the control to prioritize Internet traffic. Even as a trilateral cooperation, Charter-Time Warner-Bright House, will only have about 30% of the broadband market. This “New Charter” is already thinking ahead to the opportunities they can realize in this market. (Steel, 2015)
Dodgers will be televised. The Dodgers LA games have been exclusive to Time Warner Cable since 2014. Part of recent deal benefits baseball fans, as Charter plans to start offering the Dodger’s owned channel. Charter expects to have the channel available within the next couple weeks.
Mergers play out like war in the sense that alliances grow, banding together against their rivals and over-stepping the borders. Russian politician, Dmitry Rogozin joked about Russia's assertiveness, “tanks don't need visas.” (BBC News, 2015) Once Charter has established their tank, we’ll have to see if they’re able to deploy faster and better quality service.
Works Cited
BBC News. (2015, 05 26). Russia begins massive air force exercise. Retrieved 05 26, 2015, from BBC : http://www.bbc.com/news/world-europe-32877936
Steel, E. (2015, 05 26). Broadband at the Center of Charter-Time Warner Cable Deal. Retrieved 05 28, 2015, from New York Times: http://www.nytimes.com/2015/05/27/business/dealbook/charter-communications-agrees-to-acquire-time-warner-cable.html?_r=0
