Tags: New York City | cable | merger | Time Warner

New York City Approves Time Warner Cable-Charter Merger

Wednesday, 09 Mar 2016 04:32 PM

Charter Communications Inc. won approval from New York City officials to acquire Time Warner Cable Inc., inching closer to becoming the second-largest cable operator in the country.

The city’s Franchise and Concession Review Committee approved the transfer of its contracts between the cable operators during a public meeting on Wednesday. New York state regulators had given the deal a green light in January after Charter committed to increase broadband speeds, expand network access in low-income communities and improve customer service. The city’s approval came after a separate review process to determine if the acquisition is in the public interest.

Charter, based in Stamford, Connecticut, committed to diversity and public access channel initiatives.

The $55.1 billion deal would create a larger No. 2 cable provider behind Comcast Corp., with customers in cities including Los Angeles and New York. Charter and supporters of the deal are still jockeying with critics during what could be federal regulators’ final weeks of reviewing the merger announced last May. Charter Chief Executive Officer Tom Rutledge said last week he hoped to conclude the review this May.

With the combination, Charter would almost quadruple its cable subscribers, gaining 12 million customers. The business would have about 17 million basic cable customers, compared with Comcast’s 22 million.

California is the only state yet to approve of the merger, according to Rutledge. Last week, the Office of Ratepayer Advocates, an independent division of the California Public Utilities Commission, said the deal should be rejected because it would likely lead to higher prices and lower service quality.

 

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Charter Communications Inc. won approval from New York City officials to acquire Time Warner Cable Inc., inching closer to becoming the second-largest cable operator in the country.
New York City, cable, merger, Time Warner
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2016-32-09
Wednesday, 09 Mar 2016 04:32 PM
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