Time Warner Cable will be bought by Charter Communications for $55bn or $195 a share. After the drop out from the deal of Comcast, Time Warner Cable have been approached by Charter, which is the third largest cable television provider. The deal show how consolidation is becoming increasingly important in the Media Industry. The new giant will have to pass by the difficult waters of regulators, which have previously led the Comcast-TWC deal to a stalemate, and further to the drop out of Comcast. TWC’s share closed higher on Friday, and considering the premium Charter is willing to pay, todday Time Warner will soar. In Merger Arbitrage, normally the target company’s share soar following the ews and trying to adjust to the price of the acquiror, while the acquiror’s shares tend to decline.
In TMT, the bigger the better.