Time Warner Cable Inc (NYSE:TWC) and Comcast Corporation (NASDAQ:CMCSA) have passed another hurdle in their proposed merger. Shareholders of Time Warner Cable have apparently approved that deal.
In a press release today, Time Warner Cable announced that its shareholders approved its proposed merger with Comcast. They voted at a special meeting on the proposal this morning. According to the press release, over 99% of the votes were in favor of the merger.
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Comcast shareholders approved the merger on Wednesday. In February, Time Warner Cable agreed to become a wholly owned subsidiary of Comcast. After the merger is completed, all of Time Warner Cable’s stock will be converted into the right to receive 2.875 shares of Comcast Class A common stock.
Under the terms of the deal, which is worth $45.2 billion, Comcast agreed to divest 3 million subscribers. Comcast also gets exposure to 19 of the nation’s top 20 markets and 43 of the top 50 markets. In addition, the company said it will improve the services received by Time Warner Cable customers and improve efficiency for both companies.
Comcast, Time Warner look to regulators
The two companies now must get the approval of regulators. They have been fighting an uphill battle for some time, with Netflix, Inc. (NASDAQ:NFLX) and reform groups opposing the merger, which would create the biggest cable provider in the U.S.
There’s plenty of debate on whether antitrust regulators will go for the proposed merger. The two companies maintain that their services do not overlap in very many markets, so merging would not significantly decrease the amount of competition in most markets by eliminating one competitor. Comcast has also said that if it merges with Time Warner Cable, it would result in more investments, innovation and even competition in the industry.
Interestingly, Comcast donated $110,000 to a charity dinner for Federal Communications Commissioner Mignon Clyburne in August. The donation opened up questions about whether that donation was politically motivated and aimed at greasing the wheels with the FCC to clear the way for the merger with Time Warner Cable.