Charter Communications acquires American TV giant in $55billion deal

Charter Communications confirmed Tuesday that it has acquired Time Warner Cable in a $78.7 billion deal company .

According to reports, the deal, which values Time Warner Cable at approx. $195.71 per share, will see the two companies merge and form a new company called called New Charter. The new company will be one of the largest pay TV and broadband operators in the U.S.

Charter will provide $100million in cash and shares of a new public parent company equal to 0.5409 shares of Charter for each outstanding Time Warner Cable Inc. share. The total amount paid in cash will be $55.3 billion.

The news confirmed reports that were going around on Monday that the two companies were merging, and comes about a month after Comcast withdrew its bid for TWC due to regulatory concerns.

Other reports also say that as part of the agreement, Charter will also buy Bright House Networks for more than $10 billion.

Sources also say Tom Rutledge current President and CEO of Charter Communications, will serve as President and CEO of New Charter.

"With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully–featured voice products, at highly competitive prices," said Rutledge in a statement.

Charter Communications Inc. shares are up more than 3 percent in premarket trading.