Comcast and Time Warner Cable (TWC) have reportedly entered into talks to determine how to sell off up to five million subscribers to Charter Communications, Fierce Cable reports. The divestment, which could be worth as much as USD20 billion, would achieve two potential goals: encourage Charter to refrain from making its own hostile bid for TWC, and alleviate regulatory concerns over the creation of a cable giant. The news outlet notes that previous media reports had suggested that a number of exiled TWC executives were in the running to take over the surplus subscribers and create their own company, although this plan appears to have fallen by the wayside.
As previously reported by TeleGeography’s CommsUpdate, in February this year Comcast agreed to buy TWC for USD45.2 billion in an all-stock transaction. The ‘friendly’ takeover came as something of a surprise for the industry, following several months of ‘hostile’ public pursuit by smaller rival Charter.