Comcast and Time Warner reached definitive agreements to acquire substantially all the assets of bankrupt Adelphia Communications Corporation for a total of $12.7 billion in cash and 16% of the common stock of Time Warner's cable subsidiary. The two companies also swapped certain cable systems and unwound Comcast's 17.9% interest in Time Warner Cable and 4.7% in Time Warner Entertainment. The transactions expanded both companies' footprints and improved the geographic clustering of subscribers. The June 2006 amendment adjusted terms ahead of the July 31, 2006 closing. $12.7 billion in cash plus 16% of Time Warner Cable stock (Comcast + Time Warner jointly).
Time Warner Inc. and Comcast Corporation today announced that they have reached definitive agreements to acquire substantially all the assets of Adelphia Communications Corporation for a total of $12.7 billion in cash and 16% of the common stock of Time Warner's cable subsidiary, Time Warner Cable Inc.