Investing.com - The largest U.S. cable company Comcast agreed to acquire rival Time Warner Cable in a deal valued at USD45.2 billion, according to people familiar with the negotiations.
The boards of both companies approved the deal early Thursday morning.
Under the terms of the deal, Time Warner Cable shareholders will receive USD158.82 a share in stock for their shares, nearly 18% above where TWC ended Wednesday’s session.
The merger would create a video and Internet juggernaut with 30 million subscribers and operations in some of the country's biggest markets. Comcast is the largest cable provider in the U.S. with 23 million subscribers. Time Warner is the second biggest with 12 million subscribers.
Time Warner Cable shares rallied 12.3% in trading prior to the opening bell, while Comcast added 2.3%.
Meanwhile, the outlook for U.S. equity markets was lower. The Dow Jones Industrial Average futures pointed to a loss of 0.45% at the open, S&P 500 futures declined 0.5%, while the Nasdaq 100 futures indicated a drop of 0.55% at the open.