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Charter Communications CEO On Time Warner Cable Deal

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Charter Communications CEO On Time Warner Cable Deal

Just weeks after Comcast Corporation (NASDAQ: CMCSA)'s failed bid to acquire Time Warner Cable Inc (NYSE: TWC), Charter Communications, Inc. (NASDAQ: CHTR) announced Tuesday that it will be acquiring the company in a $56 billion deal.

Accounting for the debt on Time Warner's balance sheet that Charter Communications will assume, the total value of the deal would be around $79 billion.

CEO of Charter Communications, Tom Rutledge, was on CNBC after the deal was announced to discuss the details.

Regulatory Hurdles

"If you look at the public statements of the FCC (Federal Communications Commission), what the FCC is seeking, I think, is being developed by this transaction," Rutledge said. "It's not just about doing no harm, it's about bringing better services to the country and to customers and expanding the footprint upon which those services are delivered.

Related Link: What To Know In Charter's $55 Billion Bid For Time Warner

"And I think that the competitive environment is enhanced by us doing this will be, if you look at the ecosystem, who we are playing with in terms of other competitors that are very large and we'll still be a relatively small company, compared to the large phone companies, compared to Comcast, compared to the wireless companies."

He continued, "And so, I think this is good for us, it's good for the country and, I think, it's consistent with what the regulators have said publicly that they are looking for in these kinds of transactions."

Broadband: The Key

Rutledge was asked what role broadband has in the deal. He replied that broadband is the key product in the agreement, "Yes. It has become so and it's interesting how we as historic cable operators express our business in terms of video and still call our customer relationship in terms of video."

Image Credit: Public Domain

 

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