Charter Communications is close to an agreement to acquire larger cable company Time Warner Cable for approximately $55.1 billion in cash and stock, sources told Bloomberg on Sunday.
Charter will pay Time Warner Cable $195 a share, around 14 percent higher than its close on Friday at $ 171.18 a share.
During the acquisition talks, Charter Communications faced some last minute competition from Altice, owned by French billionaire Patrick Drahi. Last week, Altice acquired Suddenlink, the seventh largest cable company in the U.S.
Charter’s move for Time Warner Cable is a large acquisition since the New York based cable company is second largest in the United States behind Comcast while Charter is the fourth largest cable company behind Cox Communications.
If federal regulators accept the agreement, it would shake up the cable industry and result in more competition for Comcast and Cox Communications.
On April 24th Comcast pulled out of the agreement to acquire 100 percent of Time Warner Cable for its offer of $45.2 billion after U.S. regulators rejected a merger between Comcast and Time Warner Cable due to anti-trust concerns about Comcast acquiring a smaller rival and having too much control over the internet during a pivotal time in TV programming when more Americans are gradually shifting away from traditional pay television in favor of streaming packages from a variety of new sources.
Apple has plans to debut a new streaming service with their latest Apple TV set top box at their upcoming Developer’s Conference in June.
Apple’s new streaming service will reportedly cost between $30-40 a month and offer around 25 channels, including large networks such as ABC, CBS, and Fox.
In April HBO partnered with Apple as an exclusive partner in offering HBO Now, a standalone streaming subscription provider that doesn’t require a cable subscription.
Some of the other companies offering streaming packages include Amazon, Netflix, Sony (Playstation Vue) and Dish Network which launched a $20 per month Sling TV streaming service earlier this year which includes cable programming and live networks.
If Charter’s acquisition is approved, the Connecticut based company stands ready to gain 12 million broadband customers from Time Warner Cable combined with its own 4.9 million broadband subscribers.
Comcast is the largest broadband provider with 22 million high-speed users.
In March, Charter Communications acquired Syracuse based Bright House Networks, the 6th largest broadband provider in the U.S. for $10.4 billion and is poised to expand its market share in Florida, California, and Michigan.
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