Adelphia Accepts Time Warner-Comcast Deal

08 April 2005

The creditors of America's fifth largest cable operator, Adelphia Communications, currently languishing under Chapter 11 bankruptcy protection, have accepted a cash and stock offer from joint suitors Time Warner and Comcast Corporation.

The offer is believed to be worth just over $17.6 billion (€13.64bn; £9.38bn) according to those close to the deal - which is still some days away from the inking.

Insiders say that TW and Comcast will stump up $12bn in cash and slightly more than $5.6bn in stock. On completion of the purchase, the capital would be injected into a new company created from a merger of Adelphia and Time Warner's respective cable units.

The deal has yet to be okayed by the Adelphia board, a creditors' committee, and the judge presiding over the Chapter 11 proceedings.

Data sourced from Wall Street Journal Online; additional content by WARC staff