NEW YORK (TheStreet) -- Comcast agrees to shed about 3.9 million subscribers, including 1.4 million Time Warner customers it plans to sell to competitor Charter Communications, to help its $45 billion takeover of Time Warner win regulatory approval.
Comcast reached a deal to sell 1.4 million Time Warner customers to competitor Charter Communications (CHTR) for an estimated $7.3 billion in cash. Comcast also plans to create a new publicly traded cable provider that will serve about 2.5 million of its existing subscribers.
Charter will create a new holding company that will have about a 33% stake in the newly created provider, with Comcast and former Time Warner shareholders owning the remaining roughly 67%.
Comcast and Charter also agreed to swap 1.6 million Time Warner customers and 1.6 million Charter customers in order to improve their geographic presence. All details of the companies' agreement is dependent upon the completion of the Comcast-Time Warner merger.
In New York, I'm Brittany Umar for TheStreet.
-- Written by Brittany Umar in New York.