warner-cable

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John Malone's Charter Communications Inc struck a $56 billion deal to buy Time Warner Cable Inc, seeking to combine the third and second largest U.S. cable operators to better compete against market leader Comcast Corp. The Federal Communications Commission immediately served notice that it would closely scrutinize the deal, focusing not only on absence of harm but benefits to the public. Charter, in which Malone-chaired Liberty Broadband Corp owns about 26 percent, is offering about $195.71 in cash-and-stock for each Time Warner Cable share, based on Charter's closing price on May 20. A merger of Charter and Time Warner Cable, with other related deals, would create a company that controls more than 20 percent of the U.S. broadband market, according to research firm MoffettNathanson.

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The negotiations with Suddenlink are more advanced and a transaction could be announced later this week, the people said. Time Warner Cable has a market capitalization of $44.5 billion. Since Time Warner Cable's merger with Comcast fell apart last month, Time Warner Cable is also being circled by small rival Charter Communications.