(UPDATE: MERGER DEAD) Charter and Comcast reach agreement on divestitures
UPDATE, April 24, 2015: The Comcast-Time Warner merger is now dead. No swaps of systems to or from Charter will take place.
Comcast to acquire most of Charter's North Carolina systems
Charter Communications and Comcast announced a three-step deal involving some current Charter, Time Warner Cable, and Comcast systems, subject to a successful closure of the Time Warner-Comcast merger.
According to a press release (Charter
) and a news item at DSLReports
the agreement includes the following:
Comcast will sell to Charter for cash current Time Warner systems serving approximately 1.4 million subscribers;
Charter will swap systems serving approximately 1.6 million subscribers in exchange for current Time Warner systems serving approximately the same number of subscribers;
Certain current Comcast systems, serving about 2.5 million subscribers will be spun off into a separate company ("SpinCo") which will be 67% owned by Comcast shareholders, but operated by 33% owner "New Charter", a new holding company which will also own Charter Communications, and in which Comcast shareholders will have a 13% ownership interest. Comcast will have no ownership interest in SpinCo and will have no management or operational role whatsoever in the new company.
The above transactions will increase Charter's footprint from 4.4 million subscribers to 5.7 million, plus management of the SpinCo systems.
According to the DSLReports article:
The Comcast systems to be sold or traded to Charter are located in Wisconsin, Ohio, Kentucky, Indiana and Alabama;
The systems Charter is trading to Comcast are located in New York, Connecticut, Massachusetts, California, Texas, Georgia, North Carolina, Tennessee, Virginia, Washington, Maryland, and some areas in other states which are adjacent to current Time Warner and Comcast systems which will be part of the post-merger Comcast.
The Comcast systems to be spun off into SpinCo are located in Indiana, Minnesota, Michigan, Kentucky, Ohio, Tennessee, Wisconsin, and Alabama.
An investor presentation is available here: http://phx.corporate-ir.net/External...F8VHlwZT0z&t=1
According to a map on page 10 of the investor presentation, Charter will still own systems in the Greenville-Spartanburg-Asheville DMA, while Charter systems in the remainder of the Carolinas, including the Boone and Hickory areas, will become Comcast systems.
Dark blue - Current Charter systems remaining with Charter
Orange - Current Comcast/Time Warner systems to be spun off into a new company, to be managed by Charter.