The transaction will generate $1.5B in savings and will be accretive to Comcast's cash flow, and it will be tax free to Time Warner's shareholders.
The merger will create a cable TV behemoth with 30M subscribers, so it wouldn't be a surprise if it were to face huge, if not insurmountable, regulatory hurdles.
Time Warner's shares are +12% at $151.50 premarket after closing at $135.31 yesterday. Comcast is +1.4%. (PR)