Comcast has announced it will buy Time Warner Cable for $45.2 billion in an all-stock deal that combines two of the biggest cable providers in the U.S., according to Reuters.

The announcement came as some surprise since smaller rival Charter Communications has publically pursued Time Warner Cable for months.

Comcast will supposedly pay $158.82 per share, which is what Time Warner Cable had "demanded" from Charter Communications, according to Reuters.

The company will divest 3 million subscribers, which is approximately a quarter of Time Warner's 12 million current customers.

Along with Comcast's 22 million video customers, the 30 million total will represent around 30 percent of the pay television video market in the U.S., according to Reuters.

In comparison, DirecTV has around 20 million video subscribers.

Once completed, the deal will be the second time in a little over a year that Comcast has helped change the media landscape in the U.S. Last year the company purchased NBC Universal for $17 billion.

"Comcast and Time Warner Cable don't compete and Comcast can easily divest a few million subscribers," said BTIG analyst Rich Greenfield, according to Reuters.

The companies will likely create $1.5 billion in operating savings, and 50 percent of those savings should take place in the first year alone, according to Reuters.

The combination is subject to approval from the U.S. Department of Justice and the Federal Communications Commission.

The deal is expected to be finalized by the end of 2014.

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