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.
    From The Founder
    Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Between the CEOs
    Metaswitch's New CEO Martin Lund Discusses His Role

    9|2|15   |   11:27   |   (2) comments


    Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
    Telecom Innovators Video Showcase
    Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

    9|2|15   |   07:13   |   (0) comments


    Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
    Between the CEOs
    CEO Chat With Jeff Miller, ActiveVideo

    8|28|15   |   19:05   |   (0) comments


    Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
    LRTV Huawei Video Resource Center
    Vodafone: Mobile Money Is About Customer Trust

    8|27|15   |   06.36   |   (0) comments


    Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
    Telecom Innovators Video Showcase
    Palo Alto Networks on Expanding in the Carrier/Service Provider Market

    8|26|15   |   07:54   |   (0) comments


    Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
    LRTV Custom TV
    Global Services Forum Preview

    8|25|15   |   02:36   |   (0) comments


    Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
    Telecom Innovators Video Showcase
    Infoblox on DNS Threat Index

    8|19|15   |   04:39   |   (0) comments


    Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
    Between the CEOs
    CEO Chat With Ihab Tarazi, Equinix

    8|14|15   |   20:18   |   (1) comment


    Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
    Telecom Innovators Video Showcase
    The Netformx Ecosystem

    8|14|15   |   09:39   |   (1) comment


    Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
    Telecom Innovators Video Showcase
    Versa Networks on Leveraging VNFs

    8|12|15   |   07:37   |   (0) comments


    Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
    LRTV Custom TV
    Transforming the Network Through OPNFV

    8|5|15   |   7:09   |   (0) comments


    Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
    LRTV Huawei Video Resource Center
    Huawei ONS Product Demo

    8|3|15   |   6:01   |   (0) comments


    Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
    Hot Topics
    T-Mobile CEO Plays Data Traffic Cop
    Sarah Thomas, Editorial Operations Director, 8/31/2015
    CEO Chat With Bill Gates
    Steve Saunders, CEO and founder, Light Reading, 8/31/2015
    Time to Monetize Cable WiFi
    Alan Breznick, Cable/Video Practice Leader, 8/31/2015
    New Apple TV: More $$, Not Content – Report
    Mari Silbey, Senior Editor, Cable/Video, 8/31/2015
    Ex-AlcaLu Boss Tasked With Bolstering Altice
    Iain Morris, News Editor, 9/1/2015
    Like Us on Facebook
    Twitter Feed
    September 16, 2015
    Wi-Fi First or Second?
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
    The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
    Cats with Phones
    It's a New Age... Click Here
    When smartphones replace stuffed animals.