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Comcast/Time Warner Buy Struggling Adelphia

Comcast and Time Warner (CNN, AOL, etc.), the two largest American cable-television companies, have agreed to purchase bankrupt Adelphia, which services states from California to Florida, for an estimated $17.6 billion in cash and stock. Comcast services the Midwest and Northeast, while Time Warner is the largest provider in New York City, making it the second-largest cable company to Comcast.

The transaction is the biggest since Comcast paid $52 billion for ATandT’s cable assets in 2002. 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.

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