The cash element is worth $55bn, with the rest covered by Charter shares.
The new company, which will also include Bright House networks, will be a broadband services and technology company serving 23.9 million customers in 41 states.
It aims to compete with US cable market leader Comcast.
Comcast, which has 27 million customers, owns NBCUniversal.
The deal comes a month after Comcast abandoned a plan to buy Time Warner Cable after heavy pressure from regulators.
US cable and internet companies are facing stiff competitive pressure and are trying to cut costs and attract new customers as users increasingly choose to stream viewing content on the internet at a time of their choosing.
Liberty Broadband is expected to own about 20% of the new company.
The deal values Time Warner Cable shares at $195.71.
In pre-market trading, Time Warner Cable’s shares were up 11% at $190.5, while Charter Communications was up 3.2% at $181.