Time Warner Cable Receives NY Approval For Charter Merger, Quickly Raises Prices
In a letter sent to customers, Time Warner Cable (TWC) announced a series of price hikes for its various TV programming and Internet services. Perhaps ill timed, the price increases come less than two weeks after New York regulators approved TWC's proposed merger with Charter Communications.
Charter confirmed back in May of last year that it agreed to buy TWC for $195.71 per share, valuing the deal at $55.76 billion. If factoring in TWC's long term debt of $22.64 billion, the value of the deal jumps to over $78 billion. Either way, it's a major move in the making, and it came one step closer to reality when New York officials gave it their thumbs up.
According to the letter being sent out to customers, TWC is raising its standard TV plan from $76.99 per month to $78.99 per month; it's Sports Pass package from $8.99 per month to $10 per month; and its Digital HD, DVR, or HD DVR set-top box and remote from $6.98 per month to $8.50 per month.
On the Internet side of things, basic service will go from $29.99 per month to $49.99 per month, while the standard tier will jump from $34.99 per month to $59.99 per month.
"Changes in your bill are mainly driven by the increase me must pay to deliver your favorite channels," TWC said.
The proposed merger still needs approval from the Department of Justice and Federal Communications Commission. Should that happen, Charter would be the second biggest cable company in the U.S. behind only Comcast, up from number four currently.
Charter confirmed back in May of last year that it agreed to buy TWC for $195.71 per share, valuing the deal at $55.76 billion. If factoring in TWC's long term debt of $22.64 billion, the value of the deal jumps to over $78 billion. Either way, it's a major move in the making, and it came one step closer to reality when New York officials gave it their thumbs up.
According to the letter being sent out to customers, TWC is raising its standard TV plan from $76.99 per month to $78.99 per month; it's Sports Pass package from $8.99 per month to $10 per month; and its Digital HD, DVR, or HD DVR set-top box and remote from $6.98 per month to $8.50 per month.
On the Internet side of things, basic service will go from $29.99 per month to $49.99 per month, while the standard tier will jump from $34.99 per month to $59.99 per month.
"Changes in your bill are mainly driven by the increase me must pay to deliver your favorite channels," TWC said.
The proposed merger still needs approval from the Department of Justice and Federal Communications Commission. Should that happen, Charter would be the second biggest cable company in the U.S. behind only Comcast, up from number four currently.
