INDIANAPOLIS - In an effort to appease federal regulators mulling a merger with Time Warner Cable, Comcast has reached an agreement to dump customers in Indiana and several other states to a start-up company to be operated by a rival.
Under the agreement, Comcast's customers in the Indianapolis area will become part of a new entity called "SpinCo."
The new company will be managed by Charter Communications, currently the fourth-largest cable company in the U.S. After SpinCo acquires some customers from Comcast and Time Warner, Charter would become the second-largest cable company in the U.S., with about 5.7 million combined subscribers.
The shuffling of Indiana customers is contingent on federal regulators approving Comcast's merger with Time Warner.
Under the agreement, Charter will own 33 percent of SpinCo and will operate the start-up company, while shareholders of Comcast will own two-thirds of the new company.
Comcast is currently a cable provider in many suburban Indianapolis communities, while Brighthouse Networks, closely affiliated with Time Warner, provides cable to most downtown areas.
Angie's List: DIY vs. hiring professional mover
A family on the move knows moving isn't cheap, so do you DIY or hire someone to help?
Angie's List CEO William Oesterle to resign
Indianapolis-based Angie's List has announced the resignation of its CEO, William Oesterle.
Baby food recalled after glass found in jar
Beech-Nut Nutrition announced a recall of approximately 1,920 pounds of baby food products after a consumer found a small piece of glass in…
Gap, Target, others face scheduling probe
The New York Attorney General's office sent a letter to 13 retailers saying it had received reports of illegal "on-call" scheduling.
Angie's List: Get ideas to spruce up your yard
Gardening can be fun, even if you don't have a green thumb.
Sabra recalls 30,000 cases of hummus
About 30,000 cases of Sabra hummus sold nationwide is being recalled due to a possible Listeria contamination.