Time Warner Cable merger with Comcast affecting you?

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by John Cuoco

MILWAUKEE- Comcast and Time Warner executives announced a $45 billion merger Thursday morning.

According to the companies, each Time Warner Cable share will be exchanged for 2.875 shares of CMCSA, equal to Time Warner Cable shareholders owning approximately 23 percent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares.

The transaction will generate approximately $1.5 billion in operating efficiencies and will be accretive to Comcast’s free cash flow per share while preserving balance sheet strength.

The merger will also be tax free to Time Warner Cable shareholders.

According to Christopher Terry, a UW-Milwaukee lecturer and Media policy expert, customer cable and internet services will likely be affected and people will also see a rate spike.

For the two companies, the deal obviously makes sense in terms of dollar signs and leverage within TV markets.

Terry said, in his opinion, for the average person there is no upside to the deal.

It may be months before consumers see any changes because this deal needs to be vetted by federal regulators.

In a joint release, the companies say that this transaction will create a leading technology and innovation company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.

Poll

Which of these new Wisconsin State Fair snacks are you going to try?

  • BBQ Chicken Cone
  • Deep Fried Maple Bacon Cookie Dough
  • Reeses Funnel Cake
  • Deep Fried Racine Kringel