Charter deal for Time Warner Cable
Charter Communications is buying Time Warner Cable for 55.33 billion US dollars (£35.9 billion), creating one of the largest TV and internet providers in the US.
The deal comes a month after Comcast, the country's largest cable provider and owner of NBCUniversal, walked away from a 45.2 billion dollar (£29.3 billion) bid for Time Warner Cable after intense pressure from regulators.
Time Warner Cable had chosen the Comcast deal and rejected a 38 billion dollar (£24.65 billion) hostile offer from Charter in early 2014.
There has been a wave of consolidation in the cable industry as providers lose TV subscribers, costs for TV, sports and films rise and pressure from online video services such as Netflix and Hulu increases.
John Malone's Liberty Broadcast, which owns more than a quarter of Charter's stock, is backing the acquisition, which gives the cable pioneer a jewel he has pursued for years and puts Charter in the same league as Comcast.
Time Warner Cable is the country's No 2 cable company and serves large markets in Los Angeles and New York.
Charter also said it would buy Bright House Networks, a smaller cable provider, for 10.4 billion dollars (£6.74 billion).
Charter, combined with Time Warner Cable and Bright House, will have nearly 24 million customers, compared with Comcast's 27.2 million. AT&T's pending deal with DirecTV would give it 26.4 million TV customers and 16.1 million internet customers.
Liberty Broadband is expected to own about 20% of the new Charter.
Charter Communications, based in Stamford, Connecticut, will provide 100 dollars (£64.91) in cash and shares of a new public parent company equal to 0.5409 shares of Charter for each outstanding Time Warner Cable share. The transaction values each Time Warner Cable share at about 195.71 dollars (£127.03).
The companies valued New York-based Time Warner Cable at a total of 78.7 billion dollars (£51.08 billion), including debt.