Comcast Corp., the nation’s largest cable and satellite TV provider, has said it is closing its $6 billion deal with Time and Time Warner, and it has agreed to buy Time Warner for $85 billion in cash and stock.
The transaction will eliminate Comcast’s “no-holds-barred approach” to acquisition, Comcast said in a statement.
Comcast said it would use the cash to help fund investments in its broadband, voice and video networks.
“Comcast remains committed to our investment strategy of investing in our future and we’re confident that our combined investment will deliver value for our shareholders,” the company said in the statement.
The deal is expected to close in the fourth quarter.
Comcast and Time said they would combine to create the nation�s largest broadband provider, the biggest cable company and the nation?s largest pay-TV provider.
Comcast will pay $85.50 a share in cash, plus $15.50 in stock, while Time Warner will pay Comcast $85 a share, plus stock.
Comcast already has two cable businesses, Time Warner and DirecTV, that it bought in 2010.
The combined company will be based in Arlington, Virginia, about 15 miles north of Washington.
Comcast has said that it is seeking to diversify its business, particularly by becoming a video provider.
“It�s important for us to continue to invest in the future and the innovation that’s happening in the video space and make sure that we are taking advantage of the opportunity that is emerging,” Comcast chairman Tom Wheeler said last month.
Wheeler said in March that the deal was a �great fit for the companies, and we are excited to continue our strong partnership.
“Wheeler said at the time that Comcast, which currently owns NBCUniversal, would continue to provide its TV services to Time Warner.
Time Warner also owns Warner Bros. and Cartoon Network.
Comcast�s deal with NBCUniversal has been a source of contention between the two companies for several years.
Comcast had hoped to purchase Time Warner but failed to do so last year.
Comcast announced its intent to acquire Time Warner in 2011.
AT&T Inc. also had an interest in acquiring Time Warner at the same time.
The merger is expected for a combined value of $45.4 billion.
Comcast, Time and TWC each have about 5 million customers, including about 15 million homes, according to a Wall Street Journal analysis.
Comcast owns Time Warner with a 49.6 percent stake.
Comcast plans to acquire TWC for $30.1 billion.
The company also plans to buy NBCUniversal for $45 billion.
AT & T has a 39.6 share stake.
Time has a 21.6 stake.
AT’s interest in Time Warner comes after AT&T said it plans to purchase the video provider last month for $48.5 billion.