US cable network operator Comcast has bought close rival Mediaone in a deal worth $60 billion.
The combined company will tackle the growing market for broadband services to the home in the US, using both companies' existing domestic cable network infrastructure.
Around 18 per cent of US households will be passed by cable owned by the combined company and it will start with a combined customer base of 11 million.
Each Mediaone shareholder will receive 1.1 shares of Comcast class A special common stock for each Mediaone share, or $80.16 per share based on Comcast's closing stock price of $72.875 last Friday.
Mediaone's chief executive Charles Lillis, who will serve as vice chairman of the new company, pointed to the companies' combined strengths in domestic and international broadband, programming and telephony.
"Together, we will be optimally positioned to develop and provide nationally branded broadband services across our principal business lines of video, voice and data," he said.
However, the deal is far from signed and sealed. Mediaone has 45 days during which time it can consider other merger offers, but would have to pay $1.5 billion to Comcast if any alternative deal was struck.
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