Here’s who'll make the most from the $55 billion Charter-Time Warner deal

time warner cable

(Joshua Lott/Reuters)
Charter Communications announced on Tuesday that it’s buying Time Warner Cable in a deal worth $55 billion. The acquisition would instantly make Charter the second largest cable broadband provider in the US, following Comcast.

To acquire Time Warner, Charter is offering $195.71 per share, roughly a 14% premium on Friday’s closing price. The deal values Time Warner at about $78.7 billion.

But it’s not just the two companies that benefit from the merger. Time Warner’s largest shareholders stand to gain hundreds of millions from the premium Charter is paying for the deal.

Here’s a list of some of Time Warner’s largest shareholders and how much they’ll gain in the value of the current shares they hold, based on Friday’s closing price. This does not include the value of unexercised options that Marcus and Pace have.

• Dodge & Cox Inc: $588 million (it owns 19.5 million shares, or 6.9% of TWC)

• Vanguard Group: $477 million (it owns 15.8 million shares, or 5.6% of TWC)

• Children’s Investment Fund Management: $453 million (it owns 15 million shares, or 5.3% of TWC)

• State Street Corporation: $363 million (it owns 12 million shares, or 4.25% of TWC)

• Paulson & Company: $263 million (it owns 8.7 million shares, or 3% of TWC)

• Robert Marcus, CEO of TWC: $2.4 million (he owns 79,620 shares)

• Wayne Pace, ex-CFO of Time Warner: $831,000 (he owns 27,527 shares)

NOW WATCH: 5 clever iPhone tricks only power users know about

More From Business Insider

• Here’s what the $56 billion Charter and Time Warner Cable merger is really about
  

• Here's what the US broadband industry will look like after the Charter-Time Warner deal
  

• Charter Communications is near an agreement to buy Time Warner Cable for $195 a share