& 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.
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    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.
    Women in Comms Introduction Videos
    Nokia's Advancement Plan: Bring Old Skills to New Roles

    6|29|16   |   7:57   |   (1) comment


    Nokia's Sandy Motley advises women to change their mindsets; get aggressive about advancing their careers; develop strong, diverse support networks; and always bring forth learned skills to take on new challenges and different roles.
    Between the CEOs
    CEO Chat: Cisco's Yvette Kanouff

    6|28|16   |     |   (0) comments


    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    LRTV Interviews
    Comcast: Prepping Next-Gen Video Services

    6|28|16   |     |   (0) comments


    In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
    LRTV Custom TV
    Energy 2020: Creating Unique Standards for Cable's Unique Networks

    6|28|16   |   09:30   |   (0) comments


    Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
    LRTV Custom TV
    Masergy: 'Now Is the Time for NFV'

    6|28|16   |     |   (0) comments


    Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Masergy Leads the Charge With NFV Capabilities

    6|28|16   |     |   (0) comments


    Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Private Company of the Year - Affirmed Networks

    6|27|16   |     |   (0) comments


    At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
    LRTV Custom TV
    Energy 2020: Growing Services, Not Consumption

    6|24|16   |   07:18   |   (0) comments


    Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
    LRTV Huawei Video Resource Center
    Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

    6|24|16   |     |   (0) comments


    To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
    LRTV Documentaries
    OPNFV Summit: Key Takeaways

    6|22|16   |   03:28   |   (0) comments


    MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
    LRTV Huawei Video Resource Center
    Bringing Ultra Broadband to the South Pacific

    6|22|16   |   7:55   |   (0) comments


    At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
    LRTV Custom TV
    Juniper's NFV Platform

    6|22|16   |     |   (0) comments


    A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
    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 6-8, 2016,
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    'Brexit' Vote Hits BT, Vodafone
    Iain Morris, News Editor, 6/24/2016
    AT&T Settles on LTE for Cellular IoT
    Dan Jones, Mobile Editor, 6/22/2016
    Brexit: It's Hard to See an Upside
    Ray Le Maistre, Editor-in-chief, 6/29/2016
    Qualcomm Readies Lower-Band 5G Testbed
    Dan Jones, Mobile Editor, 6/27/2016
    Sigfox Said to Face Customer Backlash
    Iain Morris, News Editor, 6/27/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.