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Time Warner Cable in $78.7bn takeover deal by Charter Communications | |
(35 minutes later) | |
Charter Communications has agreed to buy media giant Time Warner Cable in a cash and shares deal worth $78.7bn (£52bn). | |
The cash element is worth $55bn, with the rest covered by Charter shares. | |
The new company, which will also include Bright House networks, will be a broadband services and technology company serving 23.9 million customers in 41 states. | |
It aims to compete with US cable market leader Comcast. | |
US cable and internet companies are facing stiff competitive pressure and are trying to cut costs and attract new customers. | |
The deal values Time Warner Cable shares at $195.71. | |
In pre-market trading, Time Warner Cable's shares were up 11% at $190.5, while Charter Communications was up 3.2% at $181. |