Comcast Selling Some Cable Systems to Charter

PHILADELPHIA (AP) -

Comcast announced on Monday a series of transactions designed to lower its debt and help clear the way for its acquisition of Time Warner Cable, including the sale of cable systems with 1.4 million subscribers to Charter and the spinoff of an additional 2.5 million subscribers into a new company.

The approximately 2.5 million subscribers will be part of a new publicly traded cable provider that Philadelphia-based Comcast is creating and spinning off.

Charter Communications Inc. will form a new holding company that will own about a third of the Comcast spinoff, while shareholders of Comcast and the former Time Warner Cable will own the remaining 67 percent of the new company.

In February, Comcast Corp.’s $45.2 billion bid for Time Warner Cable Inc. topped Charter’s offer.

Comcast said that the transactions will give it less than 30 percent of homes that subscribe to cable or satellite in the U.S. after its combination with Time Warner Cable closes.

Comcast said in an investor presentation that it puts the deals’ initial value to Comcast shareholders at $19.5 billion.