Comcast to Buy Time Warner Cable

Comcast has agreed to buy Time Warner Cable for $45 billion, combining the two largest cable companies in the country.

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If the deal is approved, the combined group will be the country’s dominant provider of television channels and Internet connections, reaching roughly one in three American homes.

Time Warner Cable (TWCFortune 500) owners will be offered 2.875 Comcast(CMCSAFortune 500) shares for each share they own, valuing Time Warner Cable at about $158.82 per share.

The two companies expect the merger to take effect by the end of the year, but regulators are likely to take a close look at the potential impact on consumers.

To address those concerns, Comcast said it was prepared to divest about 3 million subscribers. But it would still have about 30 million customers. Comcast Cable CEO Neil Smit will lead the merged company.

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