In a deal that combines the No.1 and No.2 cable operators, Comcast has agreed to acquire Time Warner Cable for $159 per share, representing a enterprise value of about $45 billion.
Comcast is the largest U.S. cable operator with approximately 23 million subscribers. Time Warner Cable has about 12 million subscribers. The combined company would have $86.8 billion in annual revenue.
The proposed merger is expected to face regulatory reviews. Comcast and Time Warner said they are prepared to shed 3 million subscribers if needed to gain approvals.
Previously, Charter offered $132 per share to acquire Time Warner - a bid that was rejected by the company as below value.
The companies believe they will be able to achieve $1.5 billion in ongoing operational efficiences, including $400 million in capital savings through the merger.