Comcast to divest 3.9 million subscribers if Time Warner Cable merger pushes through
Comcast today has announced a confirmed 3.9 million subscriber divestment plan to TV and Internet service provider Charter.
The planned merger between Comcast and Time Warner Cable would create the second biggest TV service provider in the country. However, the deal is still pending as it has not been approved yet by US regulating authorities.
The move to divest its subscribers was taken as Comcast hopes that it will help the merger to close faster given the regulators look fondly on this measure.
Charter will restructure to form a new holding company that will own the old Charter company. The "New Charter
will own a 33% stake in the new cable provider SpinCo (temporary name) to come in the wake of the merger by Comcast to serve 2.5 million customers.
Once the deal closes, Charter will boast a hefty 5.7 million subscribers, making the company the second biggest cable and internet provider. The figure includes 1.4 million of these subscribers from Time Warner Cable.