Charter Communications is nearing agreement to strike a $55 billion deal to acquire Time Warner Cable, as reported by Bloomberg News. The aim is to create a merger that would create a powerful cable and broadband Internet contender in an industry that lacks competition as of now.
The companies are expected to announce their proposed merger on Tuesday. The price is 14 percent higher than Time Warner Cable’s closing stock price Friday and nearly 50 percent above Charter’s original bid for Time Warner Cable in early 2014.
Last year, Comcast offered to acquire Time Warner for $45 billion but the deal failed due to intense scrutiny by regulators, who insisted that the deal would lead to consolidation in the US Market which would, in turn, affect the consumers adversely.
With this deal, Charter is likely to become a strong rival to Comcast. The deal would hint major shifts in the American TV industry and broadband landscape.