NEW YORK (TheStreet) -- Comcast Corp. (CMCSA) plans to increase its share buyback program by $2.5 billion if its acquisition of Time Warner Cable Inc. (TWC) is approved by shareholders, CFO Michael Angelakis told Bloomberg on Monday.
Comcast was up 1.35% to $50.00 in early trading Monday.
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The addition would be on top of a current $3 billion buyback plan in place if the deal is approved. The additional $2.5 billion may not be the end of the buyback program's expansion either as that number could increase with the sale of the company's cable systems.
The sale of some the company's cable systems -- which serve 3 million subscribers -- would be worth at least $17.6 billion, according to Angelakis, and a "vast majority" of the proceeds would be put into Comcast's buyback program.
Comcast's $45 billion acquisition of Time Warner Cable must first be approved by government regulators. The planned merger would combine the number one and four cable providers in country, respectively, and boost the number of Comcast subscribers to 30 million.
TheStreet Ratings team rates COMCAST CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMCAST CORP (CMCSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."