In news that may surprise internet-mongers, Charter Communications has been rumored to be very close to a rather expensive deal with Time Warner. To merge companies would not only be very expensive, which the current estimate is around 55 billion dollars, it may also be considered a graceful move in the wake of a recent blockage between Time Warner and Comcast merging earlier in the year. Critics and average households weren’t particularly excited about Comcast having a hand in one of the largest Internet providers, taking their lackluster track record over the years into consideration.
Cecilia Kang of the Washington Post reports that the reason Comcast was shut down and Charter currently isn’t, might be because Comcast is already powerful enough: “Analysts say that Charter’s bid for Time Warner Cable may be accepted by federal regulators because it would create a stronger competitor to Comcast, the biggest cable and Internet provider in the nation, with 22 million subscribers.” This will not be Charter Communications’ first viable attempt at growing their enterprise, according to Washington Post.
The deal would expand Charter’s scope a considerable bit—the name “Charter Communications” currently might not be entirely familiar on most American’s ears. At the time of reporting, The Washington Post announced that Charter currently only has a little under 6 million subscribers and in only 25 states. Naturally, this merger would be a major opportunity for Charter, as it would expand the service provider almost entirely nationwide.
The deal is currently poised to expand the name across the country and perhaps overtake Comcast as a leading distributor of Internet provider services, a monumental opportunity disgruntled clients have been clamoring for these last several years. “Charter Chief Executive Tom Rutledge would run the new bulked up company, according to one person familiar with the terms of the proposed deal,” Meg James of the Los Angeles Times reports. Meaning, the essence of Time Warner will be run by Charter, the arguably smaller company of the two.
This could be a positive note considering Charter has effectively risen in ranks well enough to buy out Time Warner, and so perhaps Rutledge will offer a fresh perspective in the ongoing bid toward competing service providers, both Internet and television. The deal is expected to be announced very soon, but only Time will tell what will happen after that.