Updated from Monday, May 25
Charter Communications (CHTR) agreed to buy Time Warner Cable (TWC) in a cash-and-stock deal valued at $78.7 billion.
Time Warner Cable shares are being valued at $195.71 in the deal.
The stock is rising 9.6% in premarket trading on Tuesday to $187.53. Charter shares were up 4.4% to $183.
Charter will also merge with a smaller cable operator, Bright House Networks, as part of the transaction. That would leave Charter with 23 million total cable customers, second only to Comcast (CMCSA), which has 27 million.