Charter to buy Time Warner Cable in a US$78.7b deal

[NEW YORK] Charter Communications Inc said it would buy Time Warner Cable Inc in a cash-and-stock deal that values the larger rival at US$78.7 billion, to compete with No. 1 US cable services provider Comcast Corp.

The deal values each Time Warner Cable share at about US$195.71 based on Charter's closing price on May 20, the companies said in a joint statement on Tuesday.

REUTERS