WASHINGTON, May 25, 2015 – Memorial Day 2015 may not be much of a holiday for certain Wall Street dealmakers. Several sources now report that cable company Charter Communications (symbol: CHTR) is about to clinch a deal to buy Time-Warner Cable (TWC), offering existing shareholders $195 per share. TWC closed Friday at $171.18 per share.
A second cable company, Bright House Networks LLC, said to be the tenth-largest multichannel video service provider in the U.S. and its 6th largest cable internet provider, is also reportedly in on the transaction. Word on the Street is that final terms of the proposed acquisition could be announced as early as Tuesday.
The Wall Street Journal is estimating the total value of the deal will be around $55 million. It is likely that an undetermined amount of debt financing may be involved.
A new offer from Charter had been deemed likely by many analysts after the Federal government gave a thumbs-down to a Comcast/Time Warner deal in April due to anti-trust, anti-competition concerns. Time Warner had spurned an earlier offer from Charter as inadequate, but the likely new offer would seem to address those concerns.
Purportedly, outlines of the new deal have Charter paying $100 per share of WTC with the rest of the amount in Charter stock, according to Bloomberg. The nature of Bright House Networks’ involvement in the deal is less certain, but speculation has the smaller provider as being rolled up in the new entity as part of the acquisition.
Analysts and other investment experts do not expect the government to object to the newly proposed communications combo, which would make the combined entity America’s number two provider behind Comcast (CMCSA) in terms of total subscribers.