Conversations have been stirring over the past few months if the FCC will approve the New Charter deal. The FCC has finally set motion to
The Beginning of a Beautiful Friendship
Charter was looking to obtain Bright House for $10.4 billion
There were a few pending purchases and swaps/splits with Comcast that could cause Charter to own or manage over 26 million homes spread across the Midwest and Southeast region. This could transform Charter into the largest cable operator in the nation after Comcast.
Comcast withdrew its bid for $45 billion to acquire TWC at the end of April; this deal would have combined the two largest cable companies in the U.S. This deal also ended other intended transactions between other cable companies. The bidding war now begins again.
April Showers, May Flowers
April didn’t go to plan for quite a few companies, but May of 2015 was looking a little brighter for Bright House and Charter. Negotiations were still in discussion even after Comcast withdrew its bid from TWC, and speculation rose that Charter was now looking to acquire Bright House and TWC.
May 25, 2015 the two-year quest to capture TWC may come true for Charter as it was closing in on a $78.7 billion deal to finalize the takeover. Charter would become the second largest cable MSO with about 15 million video subscribers and more than 17 million broadband subscribers. Charter also agreed to pay a $2 billion breakup fee in case the deal didn’t go through.
What Lies Ahead
The deal has now been under review since May;the FCC just set up the review team to go over the final discussion regarding the merger.
It’s that time again to ask ourselves the following questions:
- What makes this deal more likely to go through than Comcast’s proposal?
- If the FCC approves, what limitations, if any, do you think will go into effect?
- What benefits lie ahead for consumers?
Only time will tell, or the next blog post might…
Send your thoughts and comments on the merger to Kelly.Potter@mintek.com