The all-stock deal was approved by the boards of both companies. It is expected to close by the end of the year, pending shareholder and regulatory approvals.
The price amounts to $158.82 per share for Time Warner Cable's roughly 285 million outstanding shares and is about 17 percent above that stock's Wednesday closing price of $135.31. It trumps a proposal by Charter Communications Inc. to buy Time Warner Cable for about $132.50 per share, or $38 billion in cash and stock.
Time Warner Cable shareholders will receive 2.875 Comcast shares for every Time Warner Cable share they own. Once the deal is final, they will end up owning about 23 percent of the combined company.
Charter had pursued Time Warner Cable for months, but Time Warner Cable CEO Rob Marcus had consistently rejected what he called a lowball offer, saying he'd cut a deal for $160 per share in cash and stock.
These amounts don't seem to register, in my mind. I remember back in the 50's when a $25,000.00 Keno ticket was a dream come true, enough to buy what you want, and almost retire. In the casino, a $20 was a common "buy in" on a game. When someone came out with a $100 bill, high roller time, the dealer would loudly announce, "Break a 100" and attracted a crowd of bosses. ...... 45 BILLION, cash or check?
