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Charter Nears $55 Billion Deal for Time Warner Cable: Source

The cash and stock deal comes just one month after Comcast Corp. dropped its $45.2 billion merger agreement with Time Warner.
's Customers Suffer Nationwide Internet Service Outage
FILE - MAY 25, 2015: According to reports, Charter Communications may be near a $55 billion deal to buy Time Warner Cable. NEW YORK, NY - AUGUST 27: A Time Warner Cable truck is viewed in Brooklyn on August 27, 2014 in New York City. Time Warner Cable, which has 11.4 million subscribers in the United States, suffered a massive power outage Wednesday morning across the nation. While customers appeared to have power back by mid-morning, thousands had lost internet service for the duration of the outage. In a deal that is valued at $45.2 billion, Time Warner Cable is attempting to merge with Comcast. Spencer Platt / Getty Images
/ Source: Reuters

Charter Communications Inc. is nearing a $55 billion agreement to acquire Time Warner Cable Inc, combining the third- and second-largest U.S. cable operators, a person familiar with the matter said on Monday.

The cash and stock deal, which values Time Warner Cable at $195 per share, comes just one month after Comcast Corp., the parent company of NBCUniversal, dropped its $45.2 billion merger agreement with Time Warner Cable over antitrust concerns.

Charter will pay $100 per share in cash and the rest in its own stock, the person said. The deal is expected to be announced on Tuesday and includes the acquisition of the sixth-largest U.S. cable operator, Bright House Networks, by Charter, the person added.

Charter Chief Executive Tom Rutledge is expected to be CEO of the combined companies, the person said.

Time Warner Cable declined to comment, while Charter and Bright House did not immediately respond to a request for comment.

Time Warner Cable shares closed Friday at $171.18.

Bloomberg first reported on the deal.


— Reuters