Charter buys US giant Time Warner Cable in $78.7bn deal

US cable company Charter Communications announced Tuesday it is acquiring rival Time Warner Cable in a deal valued at $78.7 billion, in a major consolidation on the American market.

The deal will involve a major financial package for the cable giant that was also courted by France's Altice in exploratory talks.

Charter is giving $195 per share and $100 in cash, for the number two company in the US market, it said.

If successful, the merger would mark a major consolidation in the industry, something that does not always happen smoothly in the United States.

Comcast had planned a merger with TWC that was blocked by regulatory authorities.

Charter also owns smaller media network Bright House, and the deal would make it a major player in the country's market as cable providers scramble to stay lean and aggressive during an explosion in online media.