The joint announcement of the friendly merger marks Comcast's triumph over its rival for the deal, the nation's fourth largest cable operator, Charter Communications and its biggest shareholder, Liberty Media Corp.
The deal amounts to USD 158.82 per share, about USD 23 a share above where TWC has been trading and comfortably above Charter's offer of USD 132.50 a share, which was rejected as too low.
Comcast, which owns prominent entertainment company NBCUniversal, parent of the NBC broadcast network, is already the dominant force with nearly 22 million video subscribers, compared to Time Warner Cable's estimated 12 million.
Comcast said in a statement the transaction will generate about USD 1.5 billion in efficiencies.
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"The combination of Time Warner Cable and Comcast creates an exciting opportunity for our company, for our customers, and for our shareholders," said Brian L Roberts, Chairman and CEO of Comcast Corporation.
"In addition to creating a world-class company, this is a compelling financial and strategic transaction for our shareholders," he added.
His counterpart at Time Warner Cable, Robert Marcus, said "Comcast and Time Warner Cable have been the leaders in all of the industry's most important innovations of the last 25 years and this merger will accelerate the pace of that innovation."
Comcast will acquire Time Warner Cable's approximately 11 million managed subscribers.
Comcast said that in order to address competition concerns, it is prepared to divest systems serving about three million subscribers, leaving a net gain of approximately eight million.
That would bring Comcast's managed subscriber total to roughly 30 million, the company said.