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 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.
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, 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.
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, 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.
Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.
During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.
She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.