By Jonathan Davies

Time Warner Cable is set to be sold in a deal that values it at $78 billion.

Charter Communications will purchase the giant in a cash-plus-shares deal in a bid to compete with US cable provider Comcast.

The deal values each individual Time Warner Cable share at $195.71.

Tom Rutledge, president and CEO of Charter Communications, said: “With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully featured voice products, at highly competitive prices. In addition, we will drive greater competition through further deployment of new competitive facilities-based WiFi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large, small and medium sized business services marketplace."

Robert D. Marcus, chairman and CEO of Time Warner Cable, said: "This combination will only accelerate the great operating momentum we’ve seen over the last year and provide enormous opportunities for our 55,000 dedicated employees. We remain wholly committed to bringing the very best experience to our residential and business customers coast to coast.”