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Comcast selling some cable systems to Charter

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PHILADELPHIA (AP) — Comcast announced on Monday a series of transactions designed to lower its debt and help clear the way for its acquisition of Time Warner Cable, including the sale of cable systems with 1.4 million subscribers to Charter and the spinoff of an additional 2.5 million subscribers into a new company.

The approximately 2.5 million subscribers will be part of a new publicly traded cable provider that Philadelphia-based Comcast is creating and spinning off.

Charter Communications Inc. will form a new holding company that will own about a third of the Comcast spinoff, while shareholders of Comcast and the former Time Warner Cable will own the remaining 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid for Time Warner Cable Inc. topped Charter’s offer.

Comcast said that the transactions will give it less than 30 percent of homes that subscribe to cable or satellite TV in the U.S. after its combination with Time Warner Cable closes.

Comcast said in an investor presentation that it puts the deals’ initial value to Comcast shareholders at $19.5 billion.

Charter said the acquisition of the Time Warner Cable subscribers will boost its residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also exchange about 1.6 million customers.

Charter estimates that the acquisition of the cable systems will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Charter President and CEO Thomas Rutledge said during a conference call that the transactions will help broaden Charter’s footprint in the Midwest and Southeast. The Stamford, Conn., company will acquire systems in Ohio, Kentucky, Wisconsin, Indiana and Alabama. It will also shed systems in California, New England, Tennessee, Georgia, North Carolina, Texas, Oregon, Washington and Virginia.

Rutledge said the new footprint will give Charter access to significantly underpenetrated areas and also will be easier to operate.

The spinoff company Comcast is creating will own systems adjacent to Charter systems in Michigan, Minnesota, Indiana, Alabama, Eastern Tennessee, Kentucky and Wisconsin.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will manage the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also signed off on the deal.

Comcast plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by year-end.

Shares of Charter added $1.99 to $132 in morning trading, while Comcast’s stock rose 28 cents to $51.25.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast announced on Monday a series of transactions designed to lower its debt and help clear the way for its acquisition of Time Warner Cable, including the sale of cable systems with 1.4 million subscribers to Charter and the spinoff of an additional 2.5 million subscribers into a new company.

The approximately 2.5 million subscribers will be part of a new publicly traded cable provider that Philadelphia-based Comcast is creating and spinning off.

Charter Communications Inc. will form a new holding company that will own about a third of the Comcast spinoff, while shareholders of Comcast and the former Time Warner Cable will own the remaining 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid for Time Warner Cable Inc. topped Charter’s offer.

Comcast said that the transactions will give it less than 30 percent of homes that subscribe to cable or satellite TV in the U.S. after its combination with Time Warner Cable closes.

Comcast said in an investor presentation that it puts the deals’ initial value to Comcast shareholders at $19.5 billion.

Charter said the acquisition of the Time Warner Cable subscribers will boost its residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also exchange about 1.6 million customers.

Charter estimates that the acquisition of the cable systems will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Charter President and CEO Thomas Rutledge said during a conference call that the transactions will help broaden Charter’s footprint in the Midwest and Southeast. The Stamford, Conn., company will acquire systems in Ohio, Kentucky, Wisconsin, Indiana and Alabama. It will also shed systems in California, New England, Tennessee, Georgia, North Carolina, Texas, Oregon, Washington and Virginia.

Rutledge said the new footprint will give Charter access to significantly underpenetrated areas and also will be easier to operate.

The spinoff company Comcast is creating will own systems adjacent to Charter systems in Michigan, Minnesota, Indiana, Alabama, Eastern Tennessee, Kentucky and Wisconsin.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will manage the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also signed off on the deal.

Comcast plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by year-end.

Shares of Charter added $1.99 to $132 in morning trading, while Comcast’s stock rose 28 cents to $51.25.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast announced on Monday a series of transactions designed to lower its debt and help clear the way for its acquisition of Time Warner Cable, including the sale of cable systems with 1.4 million subscribers to Charter and the spinoff of an additional 2.5 million subscribers into a new company.

The approximately 2.5 million subscribers will be part of a new publicly traded cable provider that Philadelphia-based Comcast is creating and spinning off.

Charter Communications Inc. will form a new holding company that will own about a third of the Comcast spinoff, while shareholders of Comcast and the former Time Warner Cable will own the remaining 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid for Time Warner Cable Inc. topped Charter’s offer.

Comcast said that the transactions will give it less than 30 percent of homes that subscribe to cable or satellite TV in the U.S. after its combination with Time Warner Cable closes.

Comcast said in an investor presentation that it puts the deals’ initial value to Comcast shareholders at $19.5 billion.

Charter said the acquisition of the Time Warner Cable subscribers will boost its residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also exchange about 1.6 million customers.

Charter estimates that the acquisition of the cable systems will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Charter President and CEO Thomas Rutledge said during a conference call that the transactions will help broaden Charter’s footprint in the Midwest and Southeast. The Stamford, Conn., company will acquire systems in Ohio, Kentucky, Wisconsin, Indiana and Alabama. It will also shed systems in California, New England, Tennessee, Georgia, North Carolina, Texas, Oregon, Washington and Virginia.

Rutledge said the new footprint will give Charter access to significantly underpenetrated areas and also will be easier to operate.

The spinoff company Comcast is creating will own systems adjacent to Charter systems in Michigan, Minnesota, Indiana, Alabama, Eastern Tennessee, Kentucky and Wisconsin.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will manage the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also signed off on the deal.

Comcast plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by year-end.

Shares of Charter added $1.99 to $132 in morning trading, while Comcast’s stock rose 28 cents to $51.25.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast plans to shed about 3.9 million subscribers in a deal with cable competitor Charter Communications Inc. to help Comcast’s acquisition of Time Warner Cable clear regulatory hurdles.

Comcast is creating and spinning off a new publicly traded cable provider that will serve about 2.5 million of its existing customers. Charter will form a new holding company that will have an approximately 33 percent stake in the Comcast spinoff. Comcast stockholders and former Time Warner Cable shareholders are expected to own about 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid topped Charter’s offer for Time Warner Cable Inc.

Comcast said Monday that the combined Comcast-Time Warner Cable will divest systems to Charter, resulting in a reduction of about 3.9 million video customers.

Once the Comcast-Time Warner Cable deal closes, Charter will acquire about 1.4 million existing Time Warner Cable subscribers. This will boost Charter’s current residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also each transfer about 1.6 million customers to the new company.

Charter said in an investor presentation that it estimates the acquisition of the cable systems, which gives it about 1.4 million Time Warner Cable subscribers, will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will offer management services to the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also given its necessary approval.

Comcast said it plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by the end of the year.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast plans to shed about 3.9 million subscribers in a deal with cable competitor Charter Communications Inc. to help Comcast’s acquisition of Time Warner Cable clear regulatory hurdles.

Comcast is creating and spinning off a new publicly traded cable provider that will serve about 2.5 million of its existing customers. Charter will form a new holding company that will have an approximately 33 percent stake in the Comcast spinoff. Comcast stockholders and former Time Warner Cable shareholders are expected to own about 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid topped Charter’s offer for Time Warner Cable Inc.

Comcast said Monday that the combined Comcast-Time Warner Cable will divest systems to Charter, resulting in a reduction of about 3.9 million video customers.

Once the Comcast-Time Warner Cable deal closes, Charter will acquire about 1.4 million existing Time Warner Cable subscribers. This will boost Charter’s current residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also each transfer about 1.6 million customers to the new company.

Charter said in an investor presentation that it estimates the acquisition of the cable systems, which gives it about 1.4 million Time Warner Cable subscribers, will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will offer management services to the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also given its necessary approval.

Comcast said it plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by the end of the year.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast plans to shed about 3.9 million subscribers in a deal with cable competitor Charter Communications Inc. to help Comcast’s acquisition of Time Warner Cable clear regulatory hurdles.

Comcast is creating and spinning off a new publicly traded cable provider that will serve about 2.5 million of its existing customers. Charter will form a new holding company that will have an approximately 33 percent stake in the Comcast spinoff. Comcast stockholders and former Time Warner Cable shareholders are expected to own about 67 percent of the new company.

In February Comcast Corp.’s $45.2 billion bid topped Charter’s offer for Time Warner Cable Inc.

Comcast said Monday that the combined Comcast-Time Warner Cable will divest systems to Charter, resulting in a reduction of about 3.9 million video customers.

Once the Comcast-Time Warner Cable deal closes, Charter will acquire about 1.4 million existing Time Warner Cable subscribers. This will boost Charter’s current residential and commercial video customer base to about 5.7 million from 4.4 million. Charter and Comcast will also each transfer about 1.6 million customers to the new company.

Charter said in an investor presentation that it estimates the acquisition of the cable systems, which gives it about 1.4 million Time Warner Cable subscribers, will cost approximately $7.3 billion. It estimates the value of the spinoff company at about $14.3 billion.

Comcast said that the new cable provider it is creating and spinning off will have a nine-member board. That will include six independent directors and three appointed by Charter. Comcast itself will have no ownership stake in the spun off company and will have no role in managing it. Charter will offer management services to the new company.

Both Comcast and Charter’s boards have approved the transactions, which are subject to Comcast’s deal with Time Warner Cable closing, approval by Charter shareholders and other conditions. Time Warner Cable’s board has also given its necessary approval.

Comcast said it plans to use proceeds from the transactions to lower its debt. It still anticipates its combination with Time Warner Cable bringing about $1.5 billion in operating savings. The combination is targeted to close by the end of the year.

Comcast selling some cable systems to Charter

KDWN

PHILADELPHIA (AP) — Comcast plans to sell some cable systems to competitor Charter Communications Inc. to help Comcast’s acquisition of Time Warner Cable clear clear regulatory hurdles.

Comcast is also creating and spinning off a new publicly traded cable provider that will serve about 2.5 million of its existing customers. Charter will form a new holding company that will have an approximately 33 percent stake in the Comcast spinoff.

In February Comcast Corp.’s $45.2 billion bid topped Charter’s offer for Time Warner Cable Inc.

Comcast said Monday that the combined company will divest systems to Charter, resulting in an approximately 3.9 million video customer reduction.

Once the Comcast-Time Warner Cable deal closes, Charter will acquire about 1.4 million existing Time Warner Cable subscribers. Charter and Comcast will also each transfer about 1.6 million customers to the new company.