Time Warner Cable (TWC) has announced that its stockholders have overwhelmingly approved its merger with smaller rival Charter Communications, with more than 99% of votes cast in favour of the deal. In a parallel announcement, Charter has confirmed that its shareholders have also approved the deal, as well as the buyout of smaller cableco Bright House Networks. More than 99% of the votes cast for each of the proposals voted in favour of the transactions too.
As previously reported by TeleGeography’s CommsUpdate, Charter and TWC entered into a definitive merger agreement on 23 May 2015, which valued the latter at USD78.7 billion. Charter went on to amend the terms of a separate USD10.4 billion transaction involving Bright House. The closing of the deals is subject to regulatory review and other customary conditions.
Subject to the completion of all the above, TWC shareholders are expected to own between 40% and 44% of ‘New Charter’, Bright House parent Advance/Newhouse is expected to own between 13% and 14%, and Charter owner Liberty Broadband is expected to hold between 19% and 20%. The combination of Charter, TWC and Bright House will create the second largest broadband provider in the US – behind cable giant Comcast – serving around 24 million customers across 41 states.