Comcast Gets Rid of 3.9M Customers to Ease Merger
It sells 1.4M, spins off 2.5M more
By Kevin Spak, Newser User
Posted Apr 28, 2014 10:21 AM CDT
This Feb. 11, 2011, file photo, shows the Comcast logo on one of the company's vehicles, in Pittsburgh.   (AP Photo/Gene J. Puskar, File)

(Newser) – Comcast today announced a pair of moves that will rid it of a combined 3.9 million subscribers, in an attempt to make its Time Warner merger sit more easily with regulators. Comcast will sell 1.4 million subscribers to rival (and previous Time Warner suitor) Charter Communications for $7.3 billion, the Wall Street Journal reports, making Charter the second-largest pay TV company. It will also spin off a new publicly traded company—so far known appropriately enough as "SpinCo"—and hand it 2.5 million subscribers.

SpinCo will initially be two-thirds owned by Comcast shareholders, and one-third owned by Charter. All the moves are contingent on regulators approving the Time Warner takeover. "Comcast wanted to do this deal now with Charter so it could get in front of regulators ... at the same time as the Time Warner Cable deal," one source tells Reuters. For Charter, an analyst said, this is "a transformative event and sets them up over time to consolidate … the rest of the cable industry."

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Comcast Gets Rid of 3.9M Customers to Ease Merger is...
Show results without voting
You Might Like
Showing 3 of 29 comments
May 1, 2014 2:04 AM CDT
An RCA (or similar) antennae can be found for a few dollars, used. Dump your ripoff cable for 6 months (i've done it 3 times. it takes about 2 weeks to get used to , at first ), then demand 'a la carte' (only the channels you actually like), and the cable chistlers will cave like the low-lifes they are. Have some discipline, folks. Then you'll win.
Apr 30, 2014 8:24 AM CDT
To top it off, the innovator who came up with the name SpinCo will likely get a $20 million bonus.
Apr 29, 2014 12:22 PM CDT
Two large companies merging together and working together = bad. Two large companies merging together and working together with third largest = good? Seems counterintuitive.