Tuesday morning, Charter Communications announced plans to purchase Time Warner Cable. The two companies both offer broadband and cable services in North America. The estimated $55 billion transaction, once approved, will create the second largest broadband and cable communications service in the United States.
The merger will impact the residents of three geographic areas of the nation most significantly: the Southeast, the Northeast and the West. The proposed merger must pass a regulatory review according to Susan McGalla on this PRNewsWire article. The Federal Communications Commission is expected to complete the review process sometimes during the second half of 2015. The federal agency will examine whether or not the proposed merger of the two companies will further the public interest.
Time Warner Cable was recently blocked by regulators from proceeding with an agreement that would have allowed the company to merge with Comcast, the largest cable and broadband company in the United States. That proposed transaction was prevented as a result of antitrust regulations.
The proposed merger between Charter Communications and Time Warner Cable reportedly will be funded in part byLiberty Broadband, a company founded by billionaire John Malone, the owner of Liberty Media. The proposed transaction between Charter Communications and Time Warner Cable was indicated to include an estimated $2 billion breakup fee.