Boston, MA 09/04/2014 (wallstreetpr) – The cable businesses that Comcast Corporation (NASDAQ:CMCSA)spun-off as part of a deal with Charter Communications, Inc. (NASDAQ:CHTR) will be named GreatLand Connections according to Bloomberg news. The name is a reflection of all the diverse locations that the company has served. The spun businesses are expected to serve up to 2.5 million customers mostly spread across Midwest and Southeast in the U.S.
Comcast to Own 67% of the New Company
Charter Communications to hold 33% stake in GreatLand connections; this is part of a larger plan of ensuring Comcast finds favor among authorities in its drive to acquire Time Warner Cable Inc. (NYSE:TWC). GreatLand Connections will be under the leadership of Michael Willner. If Comcast Corporation (NASDAQ:CMCSA) fails to acquire Time Warner, GreatLand Connections customers are expected to be under Comcast.
The combined company is believed to be the fifth largest cable provider in the U.S. Charter Communications is poised to receive about 1.4 million Time Warner Cable Inc. (NYSE:TWC) customers if the merger is’ approved in exchange of $7.3billion. Comcast Corporation (NASDAQ:CMCSA) Shareholders will own the remaining 67% stake of GreatLand connection. It is still unclear as to whether GreatLand connections will continue to offer internet Essential program, which for $10 a month customers enjoy internet access.
Comcast Pushing to Acquire Time Warner
Comcast and Time Warner are currently the two largest cable companies in the U.S with approximately 33.7 million Pay TV subscribers between them. Comcast Corporation (NASDAQ:CMCSA) is hoping that the divestiture of some of its businesses will enable it gain favor with regulatory authorities on its push to finalize the acquisition of Time Warner. Comcast had hoped to finalize the merger agreement back in February. Having tabled the first offer back in February, authorities have always raised concerns about the level of competitiveness that will result with the merger.
Separately, Comcast Corporation (NASDAQ:CMCSA) has reportedly struck a deal to sponsor NASCAR second tier racing series for the next ten years. The series set to run till 2024 and will be’ named NASCAR Xfinity. Sports Business Daily reports that the sponsorship agreement could be worth $200 million.
