Time Warner Inc. and Comcast Corp. reached an agreement Thursday to buy the assets of bankrupt cable company Adelphia Communications Corp. in a deal valued at $17.6 billion in cash and stock.

Time Warner and Comcast will pay $12.7 billion in cash and 16 percent of the stock in Time Warner's cable subsidiary, Time Warner Cable Inc., which will become a publicly traded company. The stock part of the payment is said to be valued at $4.9 billion. Time Warner and Comcast will also swap cable customers.

As part of the multipart deal, Comcast will give back its 21 percent interest in Time Warner Cable and pay about $1.5 billion in cash. It will wind up with an additional 1.8 million cable subscribers as a result of the deal. Time Warner will gain 3.5 million subscribers.

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