Barely fifteen days since Comcast Corporation (NASDAQ:CMCSA), a global media and technology company struck a $45 billion merger deal with Time Warner Cable Inc. (NYSE:TWC), skeptical remarks by Charter Communications (NASDAQ:CHTR) regarding the merger have been littering the media market.
Charter, providing cable television and high speed internet, was kicked in the teeth by Time Warner Cable when it had tried to tie up with Comcast for a possible merger last year. After losing out to Comcast in a bid to coalesce with the leading cable company, it’s now urging Time Warner Cable shareholders to turn down the deal with Comcast.
Charter seem to be travelling the extra mile to get things un-done between the two. In a statement filed with the US Securities and Exchange Commission, Charter said that the planned merger between Comcast and TWC could pose a high regulatory risk, in addition to the approval being dragged on to as far as the Q1 of the fiscal year of 2015.
Charter also alleged that while signing the deal, Comcast had offered a deal value of $158 per share. However, if Comcast’s closing stock prices are anything to go by, the worth of the same have plummeted to $141.6 per share. The figure seems close to what Charter had offered TWC – $130 per share, which was nonchalantly denied by the latter.
“From the regulatory perspective, it’s difficult to imagine a transaction that could concentrate the industry more than the proposed Comcast merger,” Charter said in its SEC filing.
Comcast announced its plan to buy Time Warner Cable on February 13, 2014 for $45 billion. The new cable company, only if the merger turns out to be a success, will be led by Neil Smit, the President and CEO of Comcast Corp. It will offer a comprehensive suite of services, including deployment of new as well as existing innovative products for its customers. TWC investors will receive 2.875 Comcast stocks for each of their shares once the deal is thoroughly pulled into action.
While Charter seems to be trying hard to cut the cord between Comcast and Time Warner Cable, the latter seems adamant in its stand. In response to the SEC filing by Charter earlier, TWC said, “We are fully committed to our merger with Comcast, which we believe is in the best interests of shareholders.”