The cable industry’s biggest cable bundle deal is going away in December, but some still in negotiations with providers are still waiting for the final offer.
In the months since Comcast announced it was closing its cable bundle, there have been a series of high-profile court cases, several public meetings and a slew of public statements from companies including Charter, Time Warner Cable and Comcast.
But those talks were delayed after the companies decided not to join forces.
In December, Charter and Time Warner announced they would not join forces, leaving a pair of smaller companies, Xfinity and Comcast, as the only remaining bundlers in the industry.
Now, Xtra Media, a Comcast-owned video streaming service, and a new subsidiary called Charter Cable are in negotiations to buy the other two smaller providers, Time and Cablevision, in a deal that could potentially net them $400 million to $500 million each.
The Comcast-Time Warner Cable deal would be one of the biggest cable deals in history, with Time Warner having a 25 percent stake in Xtra, Charter having a 10 percent stake and Comcast having a 5 percent stake.
Time Warner CEO Brett Kaltenborn said in a statement that the deal will allow the companies to focus on delivering more choice to customers, “while continuing to innovate and grow our businesses to reach more Americans.”
The deal would not only allow Xtra to compete with Netflix, but also provide Time Warner with more revenue, Kaltenberg added.
The deal could also provide more revenue for the cable companies, which are struggling financially.
Xtra said in an announcement Tuesday that the price tag for the deal would exceed $400 billion, including a $200 million upfront payment and a $400m annual renewal fee.
This is the second major cable deal that Xtra has been involved in recently.
Earlier this month, Comcast said it was buying Time Warner for $48.6 billion, the largest cable deal ever.
“This merger will bring Comcast to the largest media group in the world, and with the combined combined power of both companies, will enable Xtra and Charter to create the largest and most diverse network of cable and satellite providers in the United States,” Kaltenburg said.
With the deal, Comcast is also the largest provider of broadband and cable TV in the country, with about 9 million homes and about 2 million subscribers.