In a cash and shares deal worth $78.5bn (approximately 52 billion pounds), Charter Communications has taken over Time Warner Cable.
The new company will also include Bright House networks, which is to be a broadband services and technology company serving 23.9 million customers in 41 states, writes BBC.
This move is aimed at matching US cable market leader, Comcast, in a stiff competition for market shares. The takeover comes against the backdrop of a reduction in the rate at which the citizenry watches and pays for television, a vast number of them resorting to streaming videos via the internet. In this vein, cable networks have started a movement that increases their scales as well as bargaining strengths with content providers.
The NY Times shed some more light in these words;
“With those deals, Charter will become a significantly stronger rival to Comcast, the giant of the cable industry, which had until last month sought to buy Time Warner Cable itself until the plan met resistance from federal antitrust regulators.”
“The flurry of deal-making reflects the efforts of an industry grappling with a tectonic shift in how Americans watch and pay for television. With customers increasingly turning to the Internet for videos, cable companies have sought to combine to gain bigger scale and leverage in negotiations with content providers.”