Seeking Alpha

Bloomberg: Comcast looking to sell 1.5M subs to Charter, spin off 2.5M

  • Bloomberg reports Comcast (CMCSA) is close to a deal to sell 1.5M subs to Charter (CHTR), and plans to spin off another 2.5M into a new, publicly-traded company in which Charter will have a minority stake.
  • Charter is expected to pay $20B in total. The company will also hand over 275K L.A. subs to Comcast, which stands to dominate the L.A. market should regulators sign off on the Time Warner Cable deal, as part of an asset swap.
  • A deal could be announced this week, but sources caution talks could still fall apart. Reuters previously reported Charter is talking with Comcast about an $18B-$20B deal involving the acquisition of 3M subs.
Comments (3)
  • OPie415
    , contributor
    Comments (151) | Send Message
     
    That merger should never go through, but since the current administration sees fit to ignore the laws on the books it doesn't like, you can plan on approval. That is, right after the appropriate bribes...oops, campaign donation checks clear their banks.
    22 Apr, 06:35 PM Reply Like
  • chopchop0
    , contributor
    Comments (3107) | Send Message
     
    Hope so. Long CMCSA
    22 Apr, 08:57 PM Reply Like
  • Gene S
    , contributor
    Comments (38) | Send Message
     
    CHTR is a terrible company. After being their customer for many years we just switched to TDS fiber-optic service. In addition to saving 20% on our bill at regular rates, we are saving a total of over 30% for the next two years. And the quality of the service is excellent--like night and day, both technically and in customer service. As competitive alternatives present themselves in communities Charter serves, expect them to experience large-scale market-share losses. People hate them--even worse than CMCSA and Time-Warner.

     

    I would never buy one of these stocks because the operating companies are digging their own graves, and will experience a future similar to that experienced by AOL and the other dial-up ISP's.

     

    [Don't hold back, Gene. Why don't you tell the people how you REALLY feel.]
    22 Apr, 11:43 PM Reply Like
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