Comcast to buy Time Warner Cable in $44.2 billion all-stock deal

“CNBC‘s David Faber this evening tweeted that multiple unnamed sources have indicated to him that Comcast (CMCSA) will announce tomorrow a deal to purchase Time Warner Cable (TWC) for $159 per share, in an all-stock deal,” Tiernan Ray reports for Barron’s.

“With 277.9 million Time Warner Cable shares outstanding, the deal would have a market value of $$44.2 billion,” Ray reports. “With Time Warner Cable stock closing up in today’s session at $135.31, up 41 cents, the deal would offer TWC holders a nearly 18% premium.”

Full article here.

MacDailyNews Take: Back to the drawing board, Eddy!

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48 Comments

    1. Customers have been suffering from an unhappy ending for DECADES because of the monopolization of the cable TV industry.

      Two of the WORST offenders in the cable and ISP industry combining into one monster? We’re screwed. BOTH of these companies HATE and LOATHE their customers and vampirize them at every opportunity. Let’s join into one giant vampire! What a great idea. To hell with anti-monopoly laws.

      1. Would you care to back that up with some data?

        Comcast is not threatened or desperate in any way. Cable companies are regional monopolies with enormous pricing power. In most populated areas, they have fended off satellite competition, assimilated the ISPs, and are well on their way to killing off traditional copper phone lines with VOIP bundled services.

        What else is going to touch them? Cable companies will charge you about the same whether they supply you an internet feed or a traditional cable TV bundle or a VOIP phone. No cell phone or community WiFi is going to displace them anytime soon.

        This consolidation will proceed for one reason only: it will allow Comcast to extract better profit deals from Hollywood. The consumer will see no difference.

        1. With the advent of iTunes, Netflix and Hulu Plus, Comcast is becoming increasingly superfluous. Not to mention HBO Go, Showtime Anywhere soon to go provider free, and the NBC, ABC, WB and countless other networks that offer their content via free apps.

          I shouldn’t need evidence to back up a clear paradigm shift that is happening before your eyes.

          They’ll continue to provide our internet for now, but that’s about it.

      2. Cable is dead (well, dying), yes.

        But cable isn’t the issue, here. It’s TWC and Comcast’s near-stranglehold on the broadband internet business in many markets. Do we really want ONE company controlling that much internet bandwidth??

        ——RM

    1. Agree, we have some really despicable companies growing way too big in this country. Amazon, Google, and Comcast and Verizon.

      I wonder if this had anything to do with Apple trying to negotiate with TWC for the last couple of months?

          1. boy, you gotta watch those online translators, when I went from German to English it reads: “They are assigned because you have beautiful breasts.” but in my original English to German I had put “you are forgiven because you have nice breasts.”

            at least I didn’t call you a jelly doughnut.

      1. Noted, Road Warrior. Still, my particular analogy reached out for Internet legacy status by playing the analogy off the idea of annexation, not invasion, and working in Godwin’s law in the bargain. In trying to do too much with a few words, I missed the opportunity to also bomb US credibility. I only have two hands.

  1. This could also be terrible news for Comcast if people buck and reject the system enmasse. Too bad Apple doesn’t put a chunk of it’s money into becoming an Ultra High Speed Internet provider. All we need is some really wicked fast dumb pipes for data to travel down and a well thought out Apple TV box.

          1. If you search MDN you’ll note we’ve been talking about Satellites for nine-years now.

            There have always been rumors of an Apple HD content delivery system and unfortunately it turned out to be iTunes Store HD rentals and such.

            ?w=625

      1. Where does everyone else put them? Wireless seems like the true pipe dream, for now. Also undependable. Satellite maybe but ask Direct TV folk how that’s working for them, being subject to atmospheric interference. I’d settle for fiber optics.

        1. My point exactly. You can’t just hang a wire on a pole, it has to follow NEC standards and they are about full up. The options are to pay to have each pole replaced with a taller one, which is an exorbitant amount, or bury, which cost even more.

          Buying out an existing franchise is the cheapest method, even if you have to rebuild to upgrade.

          Yeah, I know. People want to just snap their fingers and get better service. If it were that east, it would already exist…..

          1. The NFPA National Electrical Code does not apply to utilities. They live in their own world. The NEC starts at your connection to the local utility. The NEC applies to industrial, commercial and residential electrical work. It also applies to elevator and communications wiring. A contractors electrical license is required for such work. Permits and inspections are also required for any work. The NEC is the basis (the minimum requirements) for electrical work. The local authority having jurisdiction, generally the public works department, starts with the NEC but can require even stronger requirements. Also, the current version of the NEC may or not be the version used in your locality. Your area may be operating under the rules of a past version of the NEC. Just because there is a new version of the NEC doesn’t mean that your city or state or county uses it. It has to be thoroughly scrutinized and approved. Electrical work ; it’s not for amateurs. “But the guy at Home Depot said that’s how to do it!”

            1. Right, that should have been NESC, which regulates the distance between the power and other utilities on the pole.

              Phone/cable are required to be 40″ below the hot/neutral or drip loop of a transformer or it’s base. Streetlights, regulating banks and risers also have requirements. These measurements are taken from the bolt. Separation is 30″ midspan.

              That is the highest a communications cable can be placed on a power or phone pole. Whether phone or cable is the next one down depends on who was on it first, and the required separation between the two is 12″ at the bolt and 9″ at midspan.

              The point is utility poles are fairly full in most places. You may be able to go 12″ below the lowest cable, but you must still maintain a minimum height requirement, which varies from 21′ over rail, 18′ over state roads, 16.5′ or 16 over streets and driveways or 10′ over grade.

              To go along with this, many power utilities are looking at getting into communications (mainly REAs), so they may or may not be obliging in letting you on their poles. If they relent (which they eventually have to according to the FCC), they may charge as much as $25 pole fee per contact per year (these rates are being strangle challenged). That adds up.

              http://www.rurdev.usda.gov/SupportDocuments/UEP_2012_NESC_Update.pdf

    1. This merger should not be allowed to happen. Stifles competition. Apple needs to do something to bypass the cable companies. Which eventually could become the cable company. But obviously Apple is aware of this more than we are. But awareness and action are two different things. Entertainment delivery is part of the future for Apple and other companies. As is payment association with credit cards. Hardware and software will always be there but they just can’t be the main source of revenue in the future. But again, Apple is acutely aware of these things. And I would like to see them do something to bitch slap the cable companies. If I’m going to be gouged for money I’d rather be gouged by Apple. At least I can expect something for my money. Apple can easily buy AT&T but I’m not sure how the regulators would like that? The studios won’t rollover for Apple. The cable companies won’t rollover for Apple. Apple needs to make a move. A big move. It’s time.

      1. The cable companies have been bitch slapping us for a long time. The pimps strutted for years, deepening their eyeshadow and primping their coiffure, lording it over us lowly consumers. If Apple comes up with a way to take down these assholes, millions of people will rise up with a roar of righteous retribution.

  2. Two Points:

    1) What DUMMY here was insisting at me last week that Time Warner wasn’t trying to sell off its Cable division? Come on! Fess up! <–Told you so. So there.

    2) This week at TWiT.TV there has been one resounding phrase being endlessly repeated by show master Leo Laporte. And that phrase is:

    “COMCAST IS THE WORST COMPANY IN AMERICA LADIES AND GENTLEMEN! THE WORST COMPANY IN AMERICA!

    One reason why was this OUTRAGEOUS scam Comcast subsidiary NBC pulled at the end of last week, the dastardly LIARS:

    That NBC story 100% fraudulent
    -By Robert Graham

    The story shows Richard Engel “getting hacked” while in a cafe in Russia. It is wrong in every salient detail.

    1) They aren’t in Sochi, but in Moscow, 1007 miles away.

    2) The “hack” happens because of the websites they visit (Olympic themed websites), not their physical location. The results would’ve been the same in America.

    3) The phone didn’t “get” hacked; Richard Engel initiated the download of a hostile Android app onto his phone. [update here] and he had to disable the security on the phone to do it.

    It was 100% RIGGED as FUD with NO basis in fact.

    *sniff*sniff* Plus, the unboxing of their ‘new’ MacBook Air was both brutal and heart wrenching! 😥 😥

    So please Comcast: GO FRACK YOURSELF

    1. BTW: ‘There will be blood’ before the FTC and FCC allow this buyout. MORE monopolization of the cable/ISP industry? I Don’t Think So.

      But then again, our Corporate Oligarchy does have a way of BUYING THE GOVERNMENT, doesn’t it. 😛

        1. Not if you want to be credible. Looking through the red or blue glasses of one set of cooperating overlords does not give you any credibility. It plays into both parties’ hands to talk about politics as if parties are what is most important about running a country. It is the two-party system (without seat limit checks to force power to be less centralized with more major parties) that is the entire problem.

          But you could reasonably say “Fascist Republicans AND Fascist Democrats” though.

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