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Time Warner and Comcast complete Adelphia purchase

Time Warner Cable and Comcast have agreed to acquire Adelphia Communications for $17.6 billion in cash and stock.

Time Warner will get most of Adelphia’s 5.3 million subscribers and plans to spin off a separate cable company that would use its stock to make additional acquisitions, the New York Times reported..

In another development, Adelphia agreed to pay $715 million in fines. Members of the founding Rigas family will forfeit $1.5 billion in assets to resolve one of nation’s largest cases of corporate fraud, the government announced.

The settlement with the Justice Department and the Securities and Exchange Commission covers numerous criminal and civil charges alleging that the Rigas family looted Adelphia and helped push it into bankruptcy.

Founder John Rigas and son Timothy are awaiting sentencing after being convicted last year of conspiracy and fraud for their roles in the scandal.

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