US cable operator Charter Communications has agreed to buy competitor Time Warner Cable in a deal worth $78.7bn (£52bn).
The takeover would combine the second and fourth largest cable providers in the US to create a single firm, which will supply broadband services and technology to 23.9 million customers across 41 states.
Despite the merging of the two companies, US market leader Comcast will retain its position as the biggest cable operator with 27 million subscribers across the US.
Soon after the announcement, FCC chairman Tom Wheeler said in a statement:
“The FCC reviews every merger on its merits and determines whether it would be in the public interest.
“In applying the public interest test, an absence of harm is not sufficient. The commission will look to see how American consumers would benefit if the deal were to be approved.”
Last month, Comcast abandoned its plans to acquire Time Warner Cable after pressure from the public and regulators, who did not want to see a single company dominate the market.
In recent years, cable companies have come under increasing pressure to improve their services and reduce costs in the wake of tens of thousands of ‘cord cutter’ opting out of broadcast television and replacing it with online streaming from the likes of Netflix and Amazon.
The deal values Time Warner Cable at $195.71 per share.
Charter has also announced that it has agreed to buy another smaller cable operator, Bright House Networks, for $10.4bn.
