Comcast has spent more than $20 billion in the next five years to acquire dozens of cable operators in an effort to build its own content and broadband network.
The acquisition of Time Warner Cable and Charter Communications is a prime example of the consolidation efforts Comcast is undertaking.
In the last five years, Comcast has invested about $20.5 billion in acquiring dozens of broadband operators, according to the company’s annual report to shareholders.
This includes the purchase of DirecTV, the largest provider of video and wireless services in the United States.
Comcast also purchased two companies in 2015, Time Warner and Charter, which offer the lowest-priced and most advanced video and broadband services.
While the companies are the top three largest broadband providers in the country, Comcast’s strategy to acquire Time Warner, which provides high-speed internet, and Charter to acquire its own video and voice services is likely to have the largest impact.
For Time Warner customers, the consolidation will make the company a better value than it was before.
According to the Comcast website, Time Warrants allow the company to increase its video, broadband, and phone offerings.
Additionally, the company has recently begun to bring new content to subscribers.
The company has also added services such as ESPN and HBO GO, which make it easier for people to watch television and movie content.
At the same time, Comcast is also expanding its internet offerings.
Comcast recently announced that it is expanding its data plans to more than 200 million homes in the US.
“With the addition of TimeWarner and Charter this year, Comcast now has more than 150 million Comcast customers across the country.
To keep up with all of these efforts, Comcast will spend $20B over the next 5 years to further consolidate its business and expand its business across the US,” Comcast Chairman and CEO Brian Roberts said in the company report.
“The acquisition of Charter and TimeWarrior, combined with our ongoing efforts to invest in the American public and increase competition in broadband, will result in significant cost savings, increased network capacity and improved customer experience.”
While Comcast may not be able to capture as much of the new revenue from its own cable network, the acquisition of Direcs cable network will provide the company with more than 20 million new subscribers, Comcast said.
This is Comcast’s first acquisition of a cable operator, and the cable network is a critical piece of its business model.
Comcast is not the only cable company to be acquiring other cable operators.
AT&T, which owns DirecTv and other cable networks, also is in the process of purchasing Time Warner.
AT&T will also have more than 80 million Direc Tv subscribers by 2023, according a report from Bloomberg.
As Comcast and AT&t merge their cable networks and reach the same number of customers, it could allow Comcast to take advantage of a merger with Charter or Time Warner in the future.
But for now, Comcast appears to be the leader in consolidation.
The merger is expected to result in more than 300,000 jobs, the Wall Street Journal reported.
Correction: An earlier version of this article stated that the deal includes Time Warner’s cable network.
Comcast has not acquired Time Warner yet.