Comcast and Time Warner, the two largest American cable-television companies, have agreed to purchase bankrupt Adelphia for an estimated $17.6 billion in cash and stock.
Adelphia services states from California to Florida, Comcast services the Midwest and Northeast. Time Warner is the largest provider in New York City, making it the second-largest cable company in the country.
Comcast currently is the dominant leader in the industry with over 23.3 million cable television customers and 7 million high-speed internet customers. They will gain market share in West Palm Beach, Florida; Boston, Massachusetts; Pittsburgh, Pennsylvania, and Washington D.C.
Time Warner’s subscription base will be located in 2-3 million clusters in the states of California, New York, Ohio, and Texas. The deal is subject to FCC approval. Once complete, the transaction will be the largest since Comcast paid $52 billion for AT&T’s cable assets in 2002.