& cplSiteName &

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.
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Wednesday, September 14, 1:00PM EDT
    What Is Agile?
    Kent J. McDonald, Product Owner, Agile Alliance
    UPCOMING COURSE SCHEDULE
    Friday, September 16, 1:00PM EDT
    How to Implement Agile
    Alan Bateman, Director, Agile Transformation
    Wednesday, September 21, 1:00PM EDT
    What Is DevOps?
    Colin Kincaid, CTO, Service Provider, Cisco
    Friday, September 23, 1:00PM EDT
    How to Implement DevOps
    ,
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Between the CEOs
    CEO Chat: UXP Systems' Gemini Waghmare

    8|26|16   |     |   (0) comments


    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    LRTV Custom TV
    F5 Virtual Network Function Integrations With Partner Orchestration Platform

    8|24|16   |   6:38   |   (0) comments


    F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
    Between the CEOs
    CEO Chat: Intel's Alexis Black Bjorlin

    8|17|16   |   06:23   |   (0) comments


    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Telecom Innovators Video Showcase
    Accelerating Telecom Digital Transformation With Nominum DNS

    8|1|16   |   12:04   |   (0) comments


    Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
    LRTV Custom TV
    Reinventing Operations for a Virtual, Software-Defined World

    7|28|16   |   5:23   |   (0) comments


    Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
    Women in Comms Introduction Videos
    Fujitsu Sales Leader Shares Lessons Learned

    7|27|16   |   5:12   |   (1) comment


    As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
    Telecom Innovators Video Showcase
    VeEX Test & Measurement Solutions

    7|25|16   |   08:57   |   (0) comments


    Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
    LRTV Custom TV
    VeEX: Live From BCE 2016

    7|25|16   |   03:20   |   (0) comments


    VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
    LRTV Custom TV
    Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

    7|25|16   |   03:09   |   (0) comments


    Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
    From the Founder
    The Russo Report: Driving Disruption

    7|25|16   |   07:44   |   (2) comments


    In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
    LRTV Custom TV
    NetScout: Maximizing Enterprise Cloud for Digital Transformation

    7|20|16   |   04:53   |   (0) comments


    Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
    Women in Comms Introduction Videos
    Ciena's VP Offers a Career Crash Course

    7|20|16   |   4:14   |   (2) comments


    How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Cisco Developing 'Monica' Digital Assistant
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
    FirstNet: A Billion-Dollar Boondoggle?
    Dan Jones, Mobile Editor, 8/26/2016
    WiCipedia: Should Men Be Included? & Olympians Face Discrimination
    Eryn Leavens, Special Features & Copy Editor, 8/26/2016
    Google Fiber Can't Be Called a Failure
    Carol Wilson, Editor-at-large, 8/26/2016
    Google Fiber Downsizing Not Confirmed
    Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    Live Digital Audio

    Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.