Charter To Buy Time Warner Cable In Effort To Fight Net Neutrality

Charter To Buy Time Warner Cable In Effort To Fight Net Neutrality

Cable companies are becoming increasingly vocal about losing some of their monopoly powers and the latest deal between Charter Communications Inc. and Time Warner shows the corporate giants will do anything in their power to maintain their position of dominance over American families.

The two mega cable companies are rumored to be in a $55.1 billion cash and stock tie up, according to people in the know.

Charter will pay approximately $195 a share, $100 in cash and the rest in its own stock, said the sources, who asked not to be identified because the talks are confidential.

The deal could be announced as soon as tomorrow.

The merger will also see Bright House Networks, a small cable company that Charter is trying to buy, be merged into the combined entity as well.

Charter is the fourth-biggest U.S. cable company and looking to take on both larger providers and also increase its leverage with customers in the face of tough new measures by the FCC to prevent large cable monopolies from abusing their position.

Cable and wireless monopolies increasingly are looking to extort internet companies, such as Google, Netflix or Facebook, for delivery of their content to users, who already pay for such delivery.

The industry faces increased competition from these companies where traditionally they have enjoyed stable monopolies. To fight back, the cable companies are looking to abuse their dominant position rather than adapting to the new market realities.

Consumers, if the cable companies got their way, would be left footing the bill and also with a fundamentally broken internet.

The tactics have been loudly opposed by rights activists, consumer groups, competition officials and politicians. The White House has pushed the FCC hard to enact tough measures that protect American consumers and preserve the fundamentally open nature of the internet.

The FCC has obliged and concocted some of the best consumer protections seen in recent American history.

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