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Comcast And Time Warner Cable To Divest 3.9 Million Subscribers Through Charter Deal

TechCrunch logo TechCrunch 28/04/2014 Ryan Lawler

Comcast announced today it’s through a series of transactions with Charter Communications that it hopes will improve the chances of getting approval for its .

The divestiture would be contingent on the approval of Comcast’s Time Warner Cable acquisition, and would occur after the close of that transaction. In keeping with , the deal would lower its combined customer base below 30 percent market share for multichannel video subscribers in the U.S.

The deal actually has three components:

  • Charter will acquire 1.4 million Time Warner Cable subscribers, which will increase its customer base to 5.7 million subscribers and make it the #2 cable provider in the U.S., behind the combined Comcast-Time Warner Cable entity.
  • The companies will each transfer about 1.6 million Time Warner Cable customers and 1.6 million Charter customers in an exchange to improve the geographic presence of each.
  • Comcast will create an independent company (for now labeled SpinCo) that will include approximately 2.5 million existing Comcast customers. Comcast shareholders will own two-thirds of the new, publicly traded company, while Charter will own one-third of it. The new company will have a nine-person board with six independent directors and three that are designated by Charter. Comcast won’t have any ownership interest or control of the new company.

This is probably a good time to remind you that in about a week. We’ll be asking him all sorts of questions about the Time Warner Cable deal, the recent , and what Comcast thinks about the . You can .

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