Allen Buys Cable Company

Microsoft co-founder Paul Allen took another big step toward his goal of creating a technology and entertainment empire Wednesday with the $3.6 billion purchase of Falcon Communications, a closely held cable TV company.

The transaction, which includes cash, stock and assumed debt, will make Allen’s Charter Communications the fourth-largest cable television operator in the nation with 5.5 million subscribers.

The deal was the latest in a yearlong buying spree that has vaulted the multibillionaire into the top ranks of the U.S. cable industry, which is undergoing a massive makeover as companies move toward offering phone, Internet and interactive video services.