This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Comcast Sheds Subscribers in $22B Deal with Charter

Stocks in this article: CMCSA CHTR TWC GS JPM

NEW YORK (The Deal) -- Cable operators Comcast (CMCSA) and Charter Communications (CHTR) announced a blockbuster, three-part deal valued at nearly $22 billion on Monday.

Comcast said it aims to ease regulatory passage for the $67 billion purchase of Time Warner Cable (TWC) by divesting cable systems with 3.9 million subscribers.

"This transaction today gives federal, state and local regulatory bodies early identification of our divestiture process which we believe should be helpful in our efforts to gain approval for our merger with Time Warner Cable," Comcast CEO Brian Roberts told investors during a call.

Comcast CFO Michael Angelakis described the transaction as an "important progress in a critical step" in completing the merger with Time Warner Cable.

The tax-free transaction with Charter is conditioned upon closing of the Time Warner Cable deal.

In the first phase, Charter will purchase 1.4 million Time Warner Cable subscribers for cash equaling 7.125 times Ebitda, which the companies estimate will come to $7.3 billion. The cable operators will swap 1.6 million subscribers in the second phase.

In the deal's last part, Comcast will spin off a unit with 2.5 million subscribers, which will be worth about $14.3 billion. The valuation of the new company includes $5.8 billion in equity and $8.5 billion in debt.

Charter will issue stock to purchase a 33% stake in the business, Comcast shareholders will own the remainder.

The lead financial advisers to Charter were Goldman Sachs (GS) bankers Timothy Ingrassia, Peter Gross and Michael Smith, and a team from LionTree Advisors including Aryeh Bourkoff, Ehren Stenzler, Rohit Dube, Matt Feldman, Adam Judd and Michael Diaz.

Other financial advisers included Guggenheim Securities bankers Alan Schwartz, Glenn Schiffman, Eric Rutkoske and Mark Radin; Bank of America Merrill Lynch bankers Mark Bush, Dan Kelly and James Lindsay; Eric Federman and John Trousdale of Credit Suisse Group; and a Deutsche Bank Securities Inc. team including Mark Fedorcik, Malcolm Morris, Jacqueline Gordon, Don Birchenough, Scott Sartorius and Alexandra Barth.

Wachtell, Lipton, Rosen & Katz lawyers Steven Cohen, Jodi Schwartz, DongJu Song, Josh Feltman, Oliver Board, Valentina Cassata, Donald Casey and Michael Sabbah provided counsel to Charter, which also retained Kirkland & Ellis LLP.

JPMorgan Chase (JPM) and Paul J. Taubman provided financial advice to Comcast.

Comcast's counsel included David Caplan and William Chudd of Davis Polk & Wardwell and Willkie Farr & Gallagher lawyers Francis Buono, James Casserly, Michael Jones, Michael Hurwitz, Mia Hayes, Melanie Medina and Joshua Parker.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,890.34 +85.54 0.48%
S&P 500 2,071.99 +1.34 0.06%
NASDAQ 4,762.7540 -2.6260 -0.06%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs