May 15 Comcast Corp and Charter
Communications Inc said on Thursday that cable veteran
Michael Willner will run the cable company that will be spun off
as part of a three-way deal that hinges on regulators approving
Comcast's $45 billion takeover of Time Warner Cable Inc.
The yet-to-be-named company that was announced on April 28
will serve 2.5 million customers in states including Indiana,
Michigan and Wisconsin. The company, which will have an equity
value of $5.8 billion, will be two-thirds owned by Comcast
shareholders and one-third owned by Charter.
Willner, 62, had a long career at Insight Communications, a
cable operator that was acquired by Time Warner Cable in 2011
for about $3 billion. No former Time Warner Cable or Insight
cable subscribers will be part of the new company, however.
Comcast is awaiting approval by the U.S. Justice Department
and the U.S. Federal Communications Commission to take over Time
Warner Cable, a process that could take many months and affect
the future of cable and broadband. The spinoff depends on that
deal being approved, as well as a swap of 1.6 million
Charter will have a services agreement to help manage and
provide technology to the company, which will pay a fee of about
4 percent of its revenue to Charter as part of the deal. Charter
has to wait at least four years before it can gain ownership
control of the company, however.
Besides Charter Chief Executive Officer Tom Rutledge, who
will serve on the company's board as nonexecutive chairman, no
other board members have been announced yet.
(Reporting by Liana B. Baker in New York; editing by Matthew