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Charter nears $55 billion deal for Time Warner Cable

Staff writer |
Time Warner Cable is nearing an agreement to be acquired by Charter Communications for about $55 billion, combining the second and third largest U.S. cable operators.

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The deal is expected to be announced on Tuesday.
Reuters reported that the cash and stock deal values Time Warner Cable at $195 per share, according to the sources, and comes just one month after Comcast Corp dropped its $45.2 billion merger agreement with Time Warner Cable, clinched in February 2014, over antitrust concerns.

The agreement represents a victory for media mogul John Malone, whose Liberty Broadband Corp is Charter's largest shareholder. Liberty is supporting the deal by acquiring $5 billion in new Charter stock, one of the people said.

Time Warner Cable shareholders will have an option on the amount of the $195 per share acquisition price to be paid in cash: able to take either $100 or $115 in cash, and the balance in Charter stock, one of the people said.

The deal is expected to be announced on Tuesday, people familiar with the matter said. Charter will also acquire Bright House Networks, the sixth-largest U.S. cable operator, for $10.4 billion, the people added.

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