Comcast has reached an agreement to acquire Time Warner Cable in an all-stock transaction worth roughly $159 a share, according to people close to the deal.



The new company, created by the $44 billion purchase, would be by far the largest cable provider in the nation with over 33 million subscribers, and is certain to face a tough review from the Federal Communications Commission.

(Read more: Comcast, Charter discuss possible deal on TWC)

The agreement comes more than eight months after Charter Communications and Liberty Media made their first foray to try and negotiate a deal to acquire Time Warner Cable and follows months of conversations between Time Warner Cable and Comcast about the prospect of an acquisition of the company.

Charter's offer of roughly $133 a share in cash and stock has been rejected by Time Warner Cable as it held out for a price of $160, which it has said is reflective of where an asset of its size and scope should trade in a deal.