Time Warner and Comcast agree Adelphia buy.(Adelphia Communications Corp.)(Brief Article)

Screen Digest, May, 2005

Time Warner and Comcast have agreed to buy all the US assets of 5.2m-subscriber Adelphia Communications for $12.7bn cash and a 16 per cent stake in Time Warner Cable. Under the terms of the transaction Adelphia's stakeholders will receive $9.2bn in cash and 16 per cent of Time Warner Cable's common equity from Time Warner. Comcast will pay Adelphia $3.5bn in cash. As part of the transaction, Time Warner and Comcast will unwind their joint venture Time Warner Entertainment. Comcast will swap its 21 per cent stake in Time Warner Cable (held through Time Warner Entertainment) and pay $1.5bn cash in exchange for 1.8m cable subscribers. Comcast acquired the stake when it bought AT&T's cable assets in 2002. It agreed with regulators to divest the holding by end 2007. Adelphia...

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