& cplSiteName &

Comcast to Send Subs to Charter if TWC Deal Closes

Dan Jones

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
    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.
    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?
    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.
    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. :-) 
    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.

    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.
    Friday, October 21, 1:00PM EDT
    Security: Evolving the Data Center
    Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
    Wednesday, October 26, 1:00PM EDT
    Security: Tackling DDoS
    Gary Sockrider, Principal Security Technologist, Arbor Networks
    Friday, October 28, 1:00PM EDT
    Security: The Plusses and Minuses of Open Source Software
    Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
    Wednesday, November 16, 1:00PM EST
    SDN 101
    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.
    LRTV Custom TV
    Next-Generation Technology Beyond DOCSIS 3.1

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Hybrid Video Solutions to Change TV, Change Future

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Huawei Future-Oriented Giga Coax Network

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Huawei at SCTE 2016

    10|20|16   |     |   (0) comments

    Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
    LRTV Custom TV
    Assuring Network Quality in a Rapidly Changing Environment

    10|20|16   |     |   (0) comments

    As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
    Telecom Innovators Video Showcase
    A10 Networks on Service Providers' Industry Needs

    10|20|16   |     |   (0) comments

    Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
    LRTV Custom TV
    New NFV Use Cases for Cable TV

    10|19|16   |     |   (0) comments

    A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
    Women in Comms Introduction Videos
    Meet the Future Workforce: New Faces, Expectations & Motivations

    10|19|16   |   5:33   |   (1) comment

    Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
    LRTV Custom TV
    ZTE Global Services User Congress 2016 Highlights

    10|19|16   |     |   (0) comments

    ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
    LRTV Custom TV
    Cliff Grossner on Cloud & Network Synergy From Carrier Service

    10|18|16   |     |   (0) comments

    Local carriers offer the collaborated cloud and network service that benefits from their understanding of the regulations operating in different vertical markets.
In this interview, Cliff Grossner from IHS Technology talks about how this advanced service can support business agility and flexibility.
    LRTV Custom TV
    VeEX's Plan for DOCSIS Deployment

    10|17|16   |     |   (0) comments

    Join VeEX's CEO Cyrille Morelle and Light Reading's Alan Breznick as they discuss VeEX's new products at SCTE 2016 at Philadelphia.
    LRTV Custom TV
    Smith Micro's Carrier-Grade WiFi Component

    10|17|16   |     |   (0) comments

    Join Carol Wilson of Light Reading as she interviews the CTO of Smith Micro, Dave Sperling.
    Upcoming Live Events
    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
    Hot Topics
    Amazon Unlimited, Alexa, AI & How to Cut Off Google at Its Knees
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/14/2016
    WiCipedia: Following Women on Twitter... and on Stage
    Eryn Leavens, Special Features & Copy Editor, 10/14/2016
    US Issues Total Flight Ban on Samsung Note 7
    Dan Jones, Mobile Editor, 10/15/2016
    Oh Snap! Qualcomm Unveils X50, Its First 5G Modem
    Dan Jones, Mobile Editor, 10/17/2016
    Verizon Wants More Data on Yahoo Breach
    Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    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.
    There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
    Animals with Phones
    Live Digital Audio

    A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

    During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.