Charter Communications announced it will buy Time Warner Cable for $56 billion. This is its second attempt to purchase the nation's second largest cable provider. Shartia Brantley reports.
If at first you don't succeed, try, try again. That's what Charter Communications did as it announced a $56 billion deal to acquire Time Warner Cable.. including debt the value rises to nearly 79-billion. Charter, the third-largest cable operator in the U.S. approached Time Warner Cable, the nation's second largest provider, in 2014, but was rejected. After regulatory hurdles nixed the Comcast and Time Warner Cable deal in April, Charter swooped in again and sweetened the deal. Valuing Time Warner Cable shares at $195.71. Regulators plan to take a close look at this potential combination too. The Federal Communications Commission Chairman has already put out a letter saying it will closely scrutinize the combination. Time Warner Cable CEO Rob Marcus said he will work tirelessly to close the deal. The consolidation in the cable industry prompted by increased competition from content providers such as Netflix. Charter Communications is also buying cable provider Bright House Networks. Tom Rutledge, President and CEO of Charter Communications said quote: "With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully-featured voice products, at highly competitive prices." Rutledge will lead the new company. Shares of Time Warner Cable and Charter Communications rose in pre-market trading. Though Time Warner Cable is well below the 195-71 offer. If approved, the merger will be completed by the end of this year.