Comcast has now officially confirmed a rumor that it is acquiring Time Warner Cable saying that the two big cable companies will merge and Comcast will acquire TWC for $45.2 billion all stock deal. After the deal closes formally, the TWC shareholders will have a 23 percent ownership of Comcast shares.
A merger of this huge magnitude is likely to raise immediate monopoly concern which Comcast will try to set aside by going for divestitures. After the divestitures and merger, Comcast will manage to keep its US market share below 30 percent.
Comcast says that the merger will net in a $1.5 billion savings in the operational costs.
The two companies agreement for merger will still have to be approved by the owners (shareholders) of both the companies and also the regulators in the United States. If both these hurdles are resolved, the merger deal is likely to be completed by December 2014.