Comcast has seemingly beat out Charter Communications when it comes to buying Time Warner Cable, Charter might still benefit.
Following reports that Comcast will sell some 3 million to 5
million subscribers to Charter Communications as part of Comcast’s $45.3 billion deal for Time Warner, Charter’s stock soared over 5% in mid-day trading on Monday to $124.12.
The deal for those subscribers could be worth some $18 billion to $20 billion.
In addition, Comcast and Charter could be making some other financial transactions. Comcast stock was up
1.1% to $49.66, with Time Warner Cable up 0.5% to $136.00.
Comcast has around 22 million subscribers; Time Warner has about 12 million. Analysts speculate that Comcast will get federal
regulatory approval for the Time Warner deal.
Late last month, Charter urged Comcast shareholders to reject the Time Warner Cable deal. It argued in a regulatory filing that the Comcast
agreement poses a high regulatory risk, with particular concern with regard to U.S. broadband consolidation where Comcast would now own 40% of the U.S. broadband market.
Comcast stock has
recently fallen about 11% -- which analysts say lowers the price tag for Time Warner to about $40 billion.