The deal will merge the second and third largest US cable operators and create a rival player to Comcast, which is the cable and broadband market leader in the country.
Last year, Time Warner preferred a $45B Comcast deal despite the Charter’s interest.
However, Comcast dropped the deal after regulators rejected it on the grounds that it would create a provider with an almost 40 percent share of the US high-speed internet market.
Charter’s merger with Time Warner will only control 20 percent of the broadband market.
Federal Communications Commission Chairman Tom Wheeler told the Wall Street Journal last week that the agency is not opposed to any and all cable deals and all such deals should be considered on their own merits.
Besides Time Warner, Charter will also acquire Bright House, the US’ sixth-largest broadband operator, for $10.4 billion.
The combined company will have 27.2 million subscribers and is expected to be run by Charter’s Chief Executive.
According to the deal Time Warner Cable’s share is roughly at $195.71 based on Charter's closing price on May 20, according to a joint statement released by the companies on Tuesday.