Light Reading

Comcast to Send Subs to Charter if TWC Deal Closes

Dan Jones
4/28/2014
50%
50%

Cable operator Comcast says it will divest 3.9 million customers and help to make Charter the second largest cable operator in the US through subscriber transfers if its bid to buy Time Warner Cable closes. (See Comcast-TWC Deal: Playing All the Numbers.)

Comcast Corp. (Nasdaq: CMCSA, CMCSK) unveiled the three-stage deal Monday. If Comcast's $45.2 billion bid for Time Warner Cable Inc. (NYSE: TWC) is approved and closes, the cable companies expect to take the following steps:

  • Comcast will divest approximately 1.4 million existing Time Warner Cable customers directly to Charter Communications Inc. for cash. Charter plans to fund that expansion through debt. (See Comcast, Charter Talking Turkey? )

  • Comcast and Charter will exchange assets serving approximately 1.6 million existing Time Warner Cable customers and 1.6 million Charter customers.

  • Comcast is also creating and spinning off a new publicly traded cable provider to cater to about 2.5 million of its existing customers. Charter will form a new holding company will have a 33% stake in the Comcast spin-off. Comcast and former Time Warner Cable shareholders will own the remaining 67% of the new entity. (See What's Next for TWC.)

    If this deal gets done, Charter will become the second-largest cable operator in the US. The deal would increase Charter's current residential and commercial video customer base from 4.4 million to approximately 5.7 million.

    — Dan Jones, Mobile Editor, Light Reading

    (6)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    DHagar
    50%
    50%
    DHagar,
    User Rank: Light Sabre
    4/29/2014 | 1:23:33 PM
    Comcast to Send Subs to Charter if TWC Deal Closes
    @Phil_Britt, I agree.  This definitely would result in a megaplayer that can, if it chooses, dominate the market.
    DHagar
    50%
    50%
    DHagar,
    User Rank: Light Sabre
    4/29/2014 | 1:20:19 PM
    Comcast to Send Subs to Charter if TWC Deal Closes
    @MikeP688, interesting thought.  Yes, they are out of the equation.  It appears that Comcast is viewing this as a battle of the full systems, and may be viewing AT&T and Verizon as just telecom networks?  This may be a miscalculation?
    Phil_Britt
    50%
    50%
    Phil_Britt,
    User Rank: Light Sabre
    4/29/2014 | 9:29:34 AM
    First Step
    While this planned divesture of customers can help smooth over some objections to the proposed merger, I still think the biggest hurdle will be convincing regulators that Comcast will provide a level field for other content providers.

    This harkens back to the days when there were only the three big networks and, in some markets, local station(s). That led to numerous regulations regarding control of the airwaves. While cable, OTT, etc., have made those rules meaningless, I still expect plenty of objections from other content providers.
    MikeP688
    50%
    50%
    MikeP688,
    User Rank: Light Sabre
    4/29/2014 | 8:38:02 AM
    Re: Comcast to Send Subs to Charter if TWC Deal Closes
    The strategic view is vital especially as the alternatives continue to evolve--including Hulu/Netflix.  Although Netflix seems to have seen the writing on the wall with deals it has made for increased traffic/etc.    What I find interesting is how AT&T and Verizon are out of the "mix" in this debate and how they would fare as the "dealing making" continues onward. :-) 
    DHagar
    50%
    50%
    DHagar,
    User Rank: Light Sabre
    4/28/2014 | 10:01:34 PM
    Comcast to Send Subs to Charter if TWC Deal Closes
    @kq4ym, I agree that this will continue to spin through several iterations and negotiations.

    I note though that they are putting together some joint ventures that give Comcast a strong equity position.  It looks like they may be dividing up the pie, but putting together a strategic plan that will be profitable.

    This will be interesting to watch from several fronts.

     
    kq4ym
    50%
    50%
    kq4ym,
    User Rank: Light Sabre
    4/28/2014 | 5:37:08 PM
    Unloading Customers
    Taking alomst 4 million customers off the Comcast list seems like a heavy loss. But, under the scrutiny their likely to receive, they've got to seem like good guys to get where they want to be. I'm sure this won't be the end of the negotiations and offers made before the final settlement dust falls.
    Flash Poll
    From The Founder
    Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
    LRTV Documentaries
    Verizon's Emmons: SDN Key to Cost-Effective Scaling

    5|22|15   |   03:53   |   (0) comments


    For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
    LRTV Documentaries
    Lack of Universal SDN a Challenge

    5|21|15   |   04:51   |   (3) comments


    Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
    LRTV Custom TV
    Steve Vogelsang Interview: Carrier SDN

    5|20|15   |   05:02   |   (0) comments


    Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
    LRTV Custom TV
    Carrier SDN: On-Demand Networks for an On-Demand World

    5|20|15   |   20:52   |   (0) comments


    Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
    LRTV Documentaries
    The Security Challenge of SDN

    5|19|15   |   02:52   |   (0) comments


    CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
    LRTV Custom TV
    NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

    5|18|15   |   5:50   |   (0) comments


    Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
    LRTV Huawei Video Resource Center
    Bay Area Spark Meetup 2015

    5|14|15   |   3:54   |   (0) comments


    Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
    LRTV Custom TV
    The Transport SDN Buzz

    5|12|15   |   06:01   |   (1) comment


    Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
    LRTV Custom TV
    Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

    5|5|15   |   04:49   |   (0) comments


    John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
    LRTV Custom TV
    Meeting the Demands of Bandwidth & Service Group Growth

    5|1|15   |   5:35   |   (0) comments


    Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
    LRTV Custom TV
    DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

    4|29|15   |   03:48   |   (0) comments


    John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
    LRTV Huawei Video Resource Center
    Predicting Traffic Patterns for Quality Mobile Broadband

    4|29|15   |   6:45   |   (0) comments


    Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
    Upcoming Live Events
    June 8, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
    Hot Topics
    Verizon Saves 60% Swapping Copper for Fiber
    Sarah Thomas, Editorial Operations Director, 5/19/2015
    Choosing a Technology Supplier? Consider Changing Your Selection Criteria
    Steve Saunders, CEO and founder, Light Reading, 5/18/2015
    Chattanooga Charts Killer Gigabit Apps
    Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
    10 Alternate Uses for Tablets
    Eryn Leavens, Copy Desk Editor, 5/22/2015
    Smarter 'Dumb' TVs Will Drive OTT Adoption
    Mari Silbey, Senior Editor, Cable/Video, 5/18/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
    My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
    I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
    Cats with Phones