As part of their plan to merge, Comcast and Time Warner Cable are selling units serving 3.9 million clients to Charter Communications in a $7.3 billion deal, reports Bloomberg.
The divestiture will reduce the combined market share of Comcast and Time Warner Cable as they prepare to merge, the story notes. Charter will buy 1.4 million existing Time Warner Cable customers. It’s also creating a company that will buy a one-third stake in a spinoff from Comcast that will take on 2.5 million Comcast customers.
“The realignment of key cable markets achieved in these transactions will enable Comcast to fill in our footprint and deliver operational efficiencies and technology improvements,” Comcast CEO Brian Roberts said in a statement.
The story, published today, Monday, April 28, 2014, adds: “The disposal announced today will reduce the combined residential market share to less than 30 percent, the companies said. Comcast reiterated that cost savings from combining with Time Warner Cable will total about $1.5 billion.”