Charter Communications Inc. (NASDAQ:CHTR), the fourth-largest U.S. cable operator, will buy Time Warner Cable Inc. (NYSE:TWC) for $78.7 billion, including debt, the two companies said in a joint statement Tuesday. Shares of Time Warner Cable gained 5 percent in morning trading, while shares of Charter Communications dipped 1 percent.
Charter will pay Time Warner Cable shareholders $195.71 per share in cash and stock. The new parent company will be called “New Charter.”
TWC, the second-largest U.S. cable operator, has a market capitalization of $48 billion, as of the close of trading Friday, while the St. Louis-based Charter Communications has a market value of nearly $20 billion.
The deal, which is subject to regulatory approval, is expected to close by the end of the year.
Here's a deeper look at stocks on the move Tuesday:
The discussions have been taking place since the beginning of the year, Re/Code reported, citing multiple sources with knowledge of the matter. But the sources said talks between Twitter and Flipboard are currently stalled.
Shares of Twitter edged up 0.4 percent to $36.83 in morning trading.
Shares of AstraZeneca PLC (ADR) (NYSE:AZN) dipped more than 2 percent Tuesday after the biopharmaceutical company’s experimental psoriasis drug was linked to suicide fears. Amgen Inc. announced Friday it was ending its partnership with AstraZeneca to develop Brodalumab, a treatment for psoriasis.
“The decision was based on events of suicidal ideation and behavior in the brodalumab program, which Amgen believes likely would necessitate restrictive labeling,” Amgen said in a statement Friday.
AstraZeneca's stock price lost 2.5 percent to $67.73 in morning trading.