As per the report, Charter is expected to pay a price of $195 per share, which would be a combination of both stocks and cash. Charter will pay a $100 per share in cash while the remaining $95 in its own stocks. Sources further told Bloomberg, that Bright House Networks, a smaller cable company that Charter is trying to buy, will also be merged into the combined entity.
The deal is interesting, considering that Charter is the fourth biggest cable operator in the U.S. market and is trying to buy the second biggest Time Warner for a second consecutive time. Its earlier 2014 bid to buy Time warner was called off and interrupted by Comcast, a deal which went off in flames.
The price is 14 percent above Time Warner Cable’s closing price on May 22. Shareholders will have the option to accept as much as $115 a share in cash and less Charter stock, sources told Bloomberg.
However, this isn’t Charter’s first big ticket buy-off which it is planning. It has also currently been renegotiating its offer to buy billionaire Si Newhouse Jr.’s Bright House Networks for $10.4 billion. That deal was however hung in between as it depended heavily on the Comcast Time Warner deal.
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