Time Warner Cable has set its special meeting for shareholders to vote on the planned merger with Charter Communications, according to Forbes Magazine. Shareholders of record as of July 28 will be allowed to cast votes on the merger plans. As a result, Charter is organizing a similar, separate vote that same day. The deal can only be completed if it is approved by a majority of each company’s shareholders—this outcome is likely, as it will help both companies compete in a landscape where other pay-TV giants, such as DIRECTV and AT&T, are also consolidating.
More from Forbes:
Time Warner Cable and Charter had announced last May that they had entered into a definitive agreement to merge. Charter is a leading internet communications company and the fourth-largest cable operator in the U.S. The deal values Time Warner Cable’s stock at $195.71/share, which gives the company an enterprise value of $78.7 billion. Charter will provide $100 in cash and the rest in shares of a new public parent company, tentatively called “New Charter,” for each Time Warner Cable share outstanding. Charter had earlier agreed to buy Bright House Networks and the Syracuse-based company will also be a part of New Charter. The deal is currently under review by the FCC and the companies expect the deal to close by the end of the year.
Time Warner Cable’s stock gained around 1% over the week through Thursday. We currently have a price estimate of $198 for Time Warner Cable. For the year 2015, we estimate revenues of $23.7 billion, in line with the consensus estimate, and EPS of $6.86, compared to a consensus estimate of $6.61.
The proposed deal with bring both companies territories they’ve never had before, and will expand the influence of both on the market as both cable TV and broadband internet providers.