Comcast is acquiring Time Warner Cable for approximately $45.2 billion, in a merger that combines the nation’s two largest cable companies. The transaction will create a new company, led by Neil Smit, president and CEO of Comcast Cable, and executive vice president at Comcast. Through the merger, Comcast will acquire Time Warner Cable’s approximately 11 million managed subscribers.
The transaction is expected to generate about $1.5 billion in operating efficiencies, says Comcast. The merger will be tax-free to Time Warner Cable shareholders.
The agreement is subject to shareholder approval at both companies, as well as regulatory review and other customary conditions. The transaction is expected to close by the end of 2014.
J.P. Morgan, Paul J. Taubman, and Barclays acted as financial advisors to Comcast and Davis Polk & Wardwell and Willkie Farr & Gallagher are its legal advisors. Morgan Stanley, Allen & Company, Citigroup and Centerview Partners are financial advisors to Time Warner Cable. Paul, Weiss, Rifkind, Wharton & Garrison and Skadden, Arps, Slate, Meagher & Flom are legal advisors.
- Read the Comcast press release here.
- Read a blog post by David Cohen, executive vice president and chief diversity officer with Comcast, here.