Charter Communications Inc (NASDAQ:CHTR) will be able to acquire Time Warner Cable (NYSE:TWC) after all.
The Federal Communications Commission and U.S. Justice Department has given the the Stamford-based telecommunications corporation the go-ahead to take over the cable giant. The deal was at risk of falling through due to antitrust considerations.
FCC Chairman Tom Wheeler said the merger was approved due to the benefit it will offer consumers in the video industry, as well as in the expansion of broadband services.
Charter Communications will become the number two in offering broadband services in the U.S., while also rising to number three in offering video services.
The acquisition is valued at a reported $56.7 billion for Time Warner Cable in addition to debt. Additionally, it is worth $10.4 billion for Bright House networks.
CHTR stock is up 4.6% Monday, while TWC shares rose 4.1%.
