Sunday, April 21, 2019

COMCAST GIVES CHARTER “CONSOLATION PRIZE”

April 28, 2014 by · Leave a Comment 

In a complicated transaction that involves swapping some coverage areas and buying others from each other, cable companies Comcast Corp. and Charter Communications have decided how to carve up their territories if and when Comcast’s acquisition of Time Warner Cable is approved. The deal, which was announced early today (Monday), would see Comcast selling — for cash — to Charter 1.4 million TWC subscribers in Ohio, Wisconsin, Kentucky, Indiana and parts of Alabama. Charter would then turn over to Comcast nearly 280,000 homes in the Los Angeles area, including Malibu, Burbank, Glendale and Alhambra. The deal, which is contingent upon Comcast receiving regulatory approval for its acquisition of Time Warner Cable, is itself subject to regulatory approval. When the dust from both deals settles, Comcast would remain the country’s biggest cable operator with about 30 million subscribers, while Charter would become the second largest cable operator with 5.7 million. For Charter, which itself had tried to buy TWC, the deal with Comcast amounts to a consolation prize.