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The Justice Department approved the Charter Communications ( CHTR ) takeover of Time Warner Cable ( TWC ) and Bright House Networks after the cable giants agreed to concessions that should benefit Netflix ( NFLX ) and other streaming media. Federal Communications Commission Chairman Tom Wheeler also backed the deal. The FCC will likely approve the combination soon. After that, California regulators would pose the final hurdle for the merger. They are expected to approve it in a vote next month. As part of the deal, Charter will expand the number of homes with broadband access by 2 million, including 1 million with another high-speed provider, Wheeler said. Netflix has endorsed the deal, based on Charter’s pledges. Charter agreed to not impose data caps or tie Internet rates to usage. Charter also won’t be allowed to sign deals with content providers to make it harder for Netflix and other streaming services to get content. Charter said last year it would have some 23.9 million cable and broadband customers in 41 states, with big gains in Los Angeles and New York. It would be the No. 2 broadband operator after Comcast ( CMSCA ). Charter Communications in May 2015 agreed to buy Time Warner Cable for $55.1 billion and Bright House for $10.4 billion. That followed the collapse of Comcast’s planned Time Warner Cable buy due to regulatory objections. Charter Communications stock rose 4.6% to 207.01 on the stock market today , with Time Warner Cable climbed 4.1% to 209.83. Netflix fell 2.4% as shares still reel from last week’s weak subscriber outlook. Comcast fell fractionally. Related: How Charter Broadband Conditions May Set Bar For Comcast Scalper1 News
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