Mergers

COMCAST AND TIME WARNER CABLE MERGER

Introduction

During 22nd of November 2013 Comcast was looking for advice to acquire Time Warner cable. An offer was also come from Charter Communication. Charter attempted to acquire Time Warner for $37.4 billion. A lucrative offer by Comcast to acquire Time Warner Cable for $45.2 billion won the battle of bidding. Charter therefore made a deal with Comcast to acquire some subscriber of Time Warner Cable.

The agreement was that Comcast will receive current share of 284.9million for a stock of 2.875 shares of Comcast. Charter will also buy 1.4 million subscribers from Comcast for $7.3 billion.

History of Comcast Corporation

Comcast Corporation is telecommunications, entertainment and Cable Company that has roots in cable television. It is the fourth largest in the United States with over 4 million subscribers in over 20 states. It serves cellular customers in New Jersey, Pennsylvania, and Delaware. It receives most of revenue of the QVC, Inc which it holds a 57 percent venture. It’s the best shopping television channel and has a great interest in Walt Disney Company and E! Entertainment Television devoted to celebrity and entertainment. In addition it has majority shares in sports arena, Philadelphia 76ers NBA and NHL Hockey teams, and Comcast-Sports Net.

It was founded in 1963 by Ralph J. Roberts and Brother Joe after sharing their stake in pioneer industries bought the America cable Systems from Jerrold Electronic Company. Later on, Robert focused on the bi9gger market and in 1966 won the cable franchises in Cheltenham, Upper Darby and Abington and purchased the Westmoreland cable system.

He then enlisted the Philadelphia Bulletin a joint venture to build more system that serves Sarasota and Florida and Venice. In 1968, as he diversified he purchased a large franchise to provide subscription in Orlando, Florida. He later changed the name in 1969 from America cable Systems to Comcast Corporation and reincorporated...