Charter Communications has offered to buy Time Warner Cable, the nation’s third largest cable operator, for $132.50 a share, according to people briefed on the matter.
The offer values Time Warner Cable at $61.3 billion, and kicks off a potential round of consolidation in the cable television industry.
Charter, backed by John Malone’s Liberty Media, has been courting Time Warner Cable for months. But people familiar with Charter’s efforts say Time Warner Cable management has refused in discussions about a deal.
So instead of pursue negotiations, Charter is taking its case to shareholders. It will begin courting major holders of Time Warner Stock, seeking to persuade them to vote for a deal.
Charter has a high bar to clear however. Its offer of $132.50 is only cents above Monday’s closing price of $132.40. In after-hours trading, Time Warner Cable stock was already trading above Charter’s offer price.
