Charter Communications Completes Acquisition of Time Warner Cable

[Retail Fan+ (Justin Hill)]

Charter Communications Completes Acquisition of Time Warner Cable

Tom Rutledge to serve as president, CEO and chairman of the combined company

By
Anne Steele and John D. McKinnon, Wall Street Journal
Updated May 18, 2016 5:36 p.m. ET

Charter Communications Inc. on Wednesday said it completed its roughly $60 billion acquisition of Time Warner Cable Inc., solidifying the formation of a telecommunications behemoth that faced regulatory hurdles and criticism from consumer groups.

The new Charter Communications is the second-biggest broadband provider in the country, after  Comcast Corp. , and the third-largest pay-TV company, serving more than 17 million video customers, trailing  AT&T Inc.  and Comcast. As part of the transaction, Charter also agreed to acquire smaller operator Bright House Networks. That deal also was completed, Charter said Wednesday.

Stockholders of Time Warner, other than  Liberty Broadband Corp.  and  Liberty Interactive Corp. , will receive $100 in cash and shares of the new public parent company, equivalent to 0.5409 shares of legacy Charter, for each share of Time Warner.

When the deal was announced last year, the transaction was valued at approximately $55 billion. Subsequent stock gains have raised the total value to about $60 billion.

The company will be led by  Tom Rutledge, chief executive of the legacy company. He will serve as president, CEO and chairman of the board, which will have 13 directors. The board will include seven independent directors, two designated by Advance/Newhouseâ€"the former parent of Bright Houseâ€"and three designated by Liberty Broadband.

Last week, Charter got its final regulatory approval needed for the transaction from the California Public Utilities Commission.

Earlier this month, the Federal Communications Commission said it had formally voted to approve the acquisition while imposing tough operating restrictions on it. The conditions placed on the merger will help mitigate threats to online video competition that could be exacerbated by cable-industry concentration, officials said.

Specific conditions will require some degree of “overbuilding” of cable within other cable companies’ territories, something the industry traditionally hasn’t been required to do.

The deal also compels the merged company not to impose data-usage caps on customers for a number of years, and prohibits use of pay-TV contract language that critics believe has made it harder for media companies to offer content online.

Some consumer groups criticized the deal, but it drew less concern than a similar proposed merger of Comcast and Time Warner Cable last year. That deal fell apart amid regulators’ opposition.

“Current Bright House Networks and Time Warner Cable customers won’t see many changes right away, though in the coming months they will begin to hear more from us about the Spectrum brand, and the product improvements and consumer-friendly policies that come with it,” Mr. Rutledge said Wednesday.

[buzz86us]

as a result my local area is finally being updated and supposedly according to TW support it is going to be $10 cheaper for the same speed than my Verizon FIOS bill which i'll believe when I see.