Charter Communications Announces Merger with TWC, Bright House Networks

Charter Time Warner Bright House Merger

Barely a month after backing away from a proposed merger with Comcast, Charter Communications, Inc. (Nasdaq: CHTR) (together with its subsidiaries "Charter") and Time Warner Cable Inc. (NYSE: TWC) announced that they have entered into a definitive agreement for Charter to merge with Time Warner Cable. The deal values Time Warner Cable at $78.7 billion. Charter will provide $100.00 in cash and shares of a new public parent company ("New Charter") equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding. The deal values each Time Warner Cable share at approximately $195.71 based on Charter's market closing price on May 20, or approximately $200 based on Charter's 60-trading day volume weighted average price. In addition, Charter will provide an election option for each Time Warner Cable stockholder, other than Liberty Broadband Corporation ("Liberty Broadband") or Liberty Interactive Corporation, who will receive all stock, to receive $115.00 of cash and New Charter shares equivalent to 0.4562 shares of CHTR for each Time Warner Cable share they own.

In addition, Charter and Advance/Newhouse Partnership (a parent of Bright House Networks, LLC) today announced that the two companies have amended the agreement which the two parties signed and announced on March 31, 2015, whereby Charter will acquire Bright House Networks ("Bright House") for $10.4 billion. That agreement, as amended, provides for Charter and Advance/Newhouse to form a new partnership (the "Partnership") of which New Charter will own between approximately 86% and 87% and of which Advance/Newhouse will own between approximately 13% and 14%, depending on the Time Warner Cable shareholders' cash election option described above. The consideration to be paid to Advance/Newhouse by Charter will include common and convertible preferred units in the Partnership, in addition to $2 billion in cash. The common and convertible preferred partnership units will each be exchangeable into shares of New Charter. The Charter-Advance/Newhouse transaction is expected to close contemporaneously with the Charter-Time Warner Cable transaction.

The combination of Charter, Time Warner Cable, and Bright House will create a leading broadband service and technology company serving 23.9 million customers in 41 states. The announced transactions will drive investment into the combined entity's advanced broadband network, allow for wider deployment of new competitive facilities-based WiFi networks in public places, and the footprint expansion of optical networks to serve the large marketplace of small and medium-sized businesses.  This will result in faster broadband speeds, better video products, including more high definition channels, more affordable phone service and more competition, for consumers and businesses. The scale of the new entity will also result in greater product innovation, bringing new and advanced services to consumers and businesses, including Charter's Spectrum Guide and World Box and other product innovations. And Charter's commitment to superior products and outstanding customer service, and its strategy of investing in insourcing and returning offshore jobs to America will not only benefit the combined companies' customers but will also enhance opportunities for employees of the new company.