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Charter agrees to buy Time Warner Cable for $55 billion

Staff writer |
Charter Communications confirmed it would purchase Time Warner Cable for $55 billion in a deal that would merge the second and third biggest U.S. cable companies.

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The deal values each Time Warner Cable share at about $195.71 based on Charter's closing price on May 20, the companies said in a joint statement. The transaction will include a $2 billion breakup fee.

Charter also announced it would acquire Bright House Networks, the sixth largest U.S. cable company, for $10.4 billion. The combined companies could have as many as 23 million total customers, just behind Comcast's 27.2 million customers.

Bright House and Charter had extended their merger talks after Comcast's deal with Time Warner Cable fell through. Charter's previous agreement with Bright House was contingent on Comcast's completion of the buyout of Time Warner Cable.

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